OPC 5 Budget Law 5 REPORT ON THE NATIONAL BUDGET AMENDMENT BILL FOR FISCAL YEAR 2020

REPORT ON THE NATIONAL BUDGET AMENDMENT BILL FOR FISCAL YEAR 2020

July 30, 2020

The National Budget Amendment Bill for Fiscal Year 2020 foresees an increase in expenditures of AR$1.86 trillion and an increase in resources of AR$642.84 billion, mainly due to the extension of the 2019 Budget and the higher disbursements caused by the health crisis and the deterioration of the macroeconomic situation.

Such dynamics deepens the financial deficit by AR$1.21 trillion, which will be basically financed with transfers of profits from the Central Bank and domestic and multilateral debt.

The initiative implies a negative financial balance of AR$3.02 trillion and a primary deficit of AR$2.23 trillion for the year 2020.

 

  • It is proposed to increase by 33.5% the budget appropriation in force as of July 18, mainly to address the social economic emergency, guarantee the functioning of the government and mitigate the pandemic.
  • Social Security and energy subsidies are the priority.
  • Appropriations related to the pandemic would increase to AR$869.5 billion.
  • National government resources would increase by 24.5% with respect to the initial appropriation: Wealth tax revenue would increase by 410.2%.
  • The Bill authorizes the subscription of securities in dollars to replace other instruments without guaranteeing an improvement.

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