OPC 5 Budget Execution 5 Analysis of National Government Budget Execution – May 2020

Analysis of National Government Budget Execution – May 2020

June 10, 2020

The transfer of profits from the Central Bank to the National Treasury for AR$430 billion during May improved total revenues to face the higher expenses demanded by the health emergency and reduced the deficit in public accounts.

  • Primary expenditures increased by 45.1% year-on-year (YoY) in real terms, basically to cover expenditures made in the context of the pandemic, which amounted to approximately AR$160.86 billion during the month.
  • The increase in total expenditures slowed down to 21.3% YoY, mainly due to a 52.4% YoY decrease in debt interest payments.
  • Without the Central Bank’s help, the primary deficit would have totaled AR$265.34 billion and total revenues would have fallen by 35.8% YoY compared to the previous year.
  • The initial budget appropriation increased by AR$788.17 billion (16.2%), 93.4% of the increase being concentrated in social benefits (AR$541.23 billion), in transfers to the provinces (AR$124.92 billion) and in other current expenditures (AR$69.83 billion).
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