The increase in total resources (net of Central Bank profits) and a decrease in expenditures led the National Government to record another decrease in the primary deficit in May, which reached AR$ 72.8 billion, an improvement in real terms of 81.2% with respect to the imbalance recorded in the same month of last year.

  • Excluding transfers from the Central Bank to the Treasury, total revenues expanded by 41.5% year-on-year (YoY) during May, mainly because of the growth in tax revenues, to which was added AR$ 58.24 billion from the Solidarity Contribution in the context of the pandemic.
  • Primary expenditure declined because of the drop in pensions (10.0% YoY) and public sector salaries (7.9% YoY), but also because the funds allocated to mitigate the effects of the health crisis were lower in the year-on-year comparison with May 2020.
  • Total expenditure, including debt interest payments, contracted 15.8% YoY.
  • Expenditures on social programs was reduced by 41.5%, basically because of the discontinuation of the IFE and the AETP. However, other social assistance programs were strengthened and, in some cases, increased by more than 70%.
  • There was a real increase of 36.3% in capital expenditures for the month of May (AR$ 58.69 billion), with increases in all components, but mainly in the funds allocated to the Pro.Cre.Ar. housing plan.
  • Expenditures related to the COVID-19 pandemic totaled AR$125.43 billion at the end of May. The funds allocated for this purpose increased by 308.9% since the budget began to be executed, partly because of higher exceptional revenues.
Budget Bill 2019 – Preliminary Approval by the Chamber of Deputies

Budget Bill 2019 – Preliminary Approval by the Chamber of Deputies

By virtue of the amendments introduced by the Chamber of Deputies in the 2019 Budget Bill, resources are increased by AR$2.67 billion and expenditures by AR$24.2 billion, which creates a financing gap of AR$21.53 billion.

Under current legislation, this requires a reduction of expenditures by the same amount or to seek additional financing, which would alter the primary and financial balances.

The preliminary approval implies an increase of 0.1% in resources and an increase of 0.6% in total expenditures.

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