Analysis of National Government Budget Execution – May 2020
The transfer of profits from the Central Bank to the National Treasury for AR$430 billion during May improved total revenues to face the higher expenses demanded by the health emergency and reduced the deficit in public accounts.
- Primary expenditures increased by 45.1% year-on-year (YoY) in real terms, basically to cover expenditures made in the context of the pandemic, which amounted to approximately AR$160.86 billion during the month.
- The increase in total expenditures slowed down to 21.3% YoY, mainly due to a 52.4% YoY decrease in debt interest payments.
- Without the Central Bank’s help, the primary deficit would have totaled AR$265.34 billion and total revenues would have fallen by 35.8% YoY compared to the previous year.
- The initial budget appropriation increased by AR$788.17 billion (16.2%), 93.4% of the increase being concentrated in social benefits (AR$541.23 billion), in transfers to the provinces (AR$124.92 billion) and in other current expenditures (AR$69.83 billion).