OPC 5 Budget Execution 5 ANALYSIS OF NATIONAL GOVERNMENT BUDGET EXECUTION – OCTOBER 2020

ANALYSIS OF NATIONAL GOVERNMENT BUDGET EXECUTION – OCTOBER 2020

November 11, 2020
Oficina de Presupuesto del Congreso

Excluding the profits transferred by the Central Bank to the Treasury, the revenues of the national government fell in October by 11.0% in real terms with respect to the same month of the previous year, while primary expenditures grew by 22.9%, mainly due to the health emergency. The primary deficit totaled AR$75.1 billion.

  • The BCRA (Central Bank of Argentina) transferred $30 billion in profits during October, which explains the 5.5% increase in Property Income.
  • The national government allocated approximately AR$77 billion to mitigate the economic effects of the COVID-19 crisis in October and for the seventh consecutive month, primary expenditures grew by double digits. Without this allocation, they would have grown at a slower rate of 4.5%.
  • Debt interest of AR$31.1 billion was accrued, 73.1% less than last October. This explains why total expenditures only grew by 2.1% in the month.
  • The financial balance went from a deficit of AR$54.8 billion in October last year to a deficit of AR$106.2 billion in October this year.
  • The slight real improvement of 0.5% YoY in current revenues was driven by Income Tax and Wealth Tax, which partially offset the fall in other taxes.
  • Civil service personnel expenditure fell by 9.0% YoY, while pensions increased by 1.9% YoY.
  • Energy subsidies totaled AR$24.4 billion, an increase of 42.8% YoY.
  • Capital transfers to government-owned companies in the transportation sector had a real growth of 351.9% YoY, basically for the urban railroads and the Belgrano Cargas.
  • The initial budget for the year increased by AR$2.7 trillion – 56.5% with respect to the initial appropriation – and 62.7% of this increase was allocated to reinforce social benefits.

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