In February, the national government had a primary surplus of AR$14.74 billion, as revenues increased nominally by 43.6%, while expenditures increased by 22.8%, 19 points lower. The financial balance was also positive by AR$1.43 billion, which also implies an improvement in relation to the deficit recorded a year ago.
During the second month of the year, tax resources increased nominally by 39.5% year-on-year (-7.5% YoY real), largely driven by export duties, which increased by 374.7% YoY, because of both amendments to legislation and changes in the exchange rate.
However, in real terms, the total resources of the national government lost against inflation, recording a drop of -7.5%. Although the drop was lower than in the previous two months, Social Security contributions fell -10.9% year-on-year.
Total expenditure amounted to AR$223.97 billion in February, an increase of 20.1% year-on-year. Current expenditures grew 22.8%, while capital expenditures contracted 17.8%.
Property Income was eight times higher than in the same month of the previous year and totaled AR$45.83 billion in the first two months of the year.
The 46% increase in allocations as of March 1 will imply a higher expenditure of AR$16.08 billion, equivalent to 0.1% of GDP in 2019.