OPC 5 Financial Report 5 ANALYSIS OF THE 2021 NATIONAL GOVERNMENT FINANCIAL REPORT

ANALYSIS OF THE 2021 NATIONAL GOVERNMENT FINANCIAL REPORT

August 04, 2022

Both the Central Government and Non-Financial Public Sector had a deficit during fiscal year 2021, although with slight improvements with respect to those recorded in 2020.

Excluding the contributions of the Central Bank to the National Treasury, the primary deficit of the National Government reached ARS2,112.859 billion, equivalent to 4.6% of the Gross Domestic Product (GDP). On the other hand, the financial result was negative at ARS2,883.501 billion, 6.2% of GDP.

  • Nineteen budget amendments were made, three of them through decrees of necessity and urgency, which increased the financial deficit of the national government by ARS 938.004 billion.
  • The primary and financial deficits were 67.2% and 44.2% higher than those projected in the budget.
  • Special Drawing Rights and the Extraordinary Solidarity Contribution (1.4% of GDP), largely drove the deviation of revenues received with respect to what was projected in the Budget Law (24.9%).
  • Expenditures also exceeded forecasts by 28.2%, mainly due to social programs, which exceeded the initial appropriation by 128.4%. In addition, energy subsidies were 58.8% higher than projected (ARS387.597 billion).
  • Pension benefits fell by 4.4% year-on-year (YoY) in real terms. On the contrary, capital transfers and energy subsidies headed the year-on-year increases, with rises of 187.0% YoY and 60.2% YoY, respectively.
  • The financial deficit of the non-financial National Public Sector (net of BCRA profits) stood at 4.1% of GDP, moderated by the surplus of trust funds.
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