FISCAL IMPACT OF BILLS ON THE NATIONAL TEACHER INCENTIVE FUND

FISCAL IMPACT OF BILLS ON THE NATIONAL TEACHER INCENTIVE FUND

by | May 30, 2024 | Cost Estimates

The seven bills analyzed propose to reinstate the Teacher Incentive Fund (FONID) from the first day of 2024 for different periods of time, which means paying retroactively the past months and then continuing with the monthly accrual.

The FONID was created for the “improvement” of teachers’ salaries, as a remunerative and non-bonus supplement.

The Fund was complemented by the National Teacher Salary Compensation Program, still in force, both of which are covered by appropriations provided for in the national budget.

  • No payments for these purposes were made this year.
  • In 2023, expenditures related to the budget program National Teacher Incentive Fund had a share of 0.18% of GDP.
  • In the last quarter of last year, teachers received an average monthly amount of ARS25,000 for this concept, between 5.9% and 12.3% of the gross salary of a primary school teacher with ten years of seniority.
  • The restitution of FONID would imply an expenditure of ARSS1,294.77 billion for 2024, equivalent to 0.21% of GDP if inflation for the last quarter of 2023 is considered and 0.16% of GDP if only inflation for 2024 is taken into account.
  • Individual amounts would range from ARS43,994 in January to ARS90,786 in December.
  • If the benefit were applied to retirees, the additional fiscal cost would be equivalent to 0.01% of GDP for every 100,000 teachers.
TRAINING ON PUBLIC FINANCE FOR LEGISLATIVE ADVISORS

TRAINING ON PUBLIC FINANCE FOR LEGISLATIVE ADVISORS

by | Apr 11, 2024 | Activities

On Tuesday, April 9, the Argentine Congressional Budget Office (OPC) initiated a training program on issues related to public finances for the advisors of deputies and senators of the Congress of the Nation. The Director-General of the OPC, Gabriel Esterelles, together with the Director of Parliamentary Training of the Senate, Camila Duro, opened the training program at the Senate.

The purpose of the program is to introduce key issues for the interpretation of initiatives related to public resources and budget design to those who assist legislators in their work.

The program, jointly organized by the OPC and the Directorate of Parliamentary Training of the Senate, was designed around three main topics: taxes, expenditures and public credit, each of them to be addressed in two classes of two hours each, twice a week.

The sequence of face-to-face meetings is being held in different spaces of each Chamber to promote direct contact and facilitate the exchange of ideas.
This training plan, which will conclude on April 25, will be delivered by the directors of the OPC, with the assistance of their analysts:
Martín López Amorós, director of Fiscal Analysis, with Pedro Velazco and Emilio Nastri; Ignacio Lohlé, director of Budget Analysis, together with Laura Cafarelli, Julieta Olivieri and Romina Muras; Joel Vaisman, director of Sustainability and Public Debt Analysis, with Eugenia Carrasco.

ANALYSIS OF NATIONAL GOVERNMENT BUDGET EXECUTION – FEBRUARY 2024

ANALYSIS OF NATIONAL GOVERNMENT BUDGET EXECUTION – FEBRUARY 2024

by | Mar 7, 2024 | Budget Execution

Due to a decrease in expenditures (-23.8% YoY) and a slight increase in revenues (+0.4% YoY), in the first two months of the year, the National Government recorded a financial surplus 150.0% higher in real terms than in the same period of the previous year.

  • The primary surplus, which does not include interest payments, was 1,805.5% higher than that obtained a year earlier.
  • Total revenues grew 0.4% in the year-on-year comparison, driven by increases in the PAIS Tax (405.9% YoY), in Export Duties (70.9% YoY) and in VAT (15.4% YoY). These increases were partially offset by the decrease in resources from Social Security (-25.1% YoY) and Income Tax (-36.5% YoY).
  • Total National Government expenditures recorded a real fall of 23.8% YoY in the first two months of the year and the cut in primary expenditures, which does not include the increase in debt interest, rose to 33.6% YoY.
  • Pensions (-33.0% YoY real), energy subsidies (-59.5% YoY real), capital expenditures (-82.4% YoY real) and social programs (-29.9% YoY real) were the items that most contributed to the reduction in expenditures. However, debt interest grew 34.2% YoY.
  • In February, the financial result was in deficit (-ARS186.635 billion), although in the first two months of the year the surplus was maintained (ARS1,020.296 billion), with levels above the average of a 15-year cycle.
  • Total accrued expenditures represented 24.0% of the budget, which is an extension of the budget in force during 2023.

ANALYSIS OF NATIONAL GOVERNMENT BUDGET EXECUTION – FEBRUARY 2024

ANALYSIS OF NON-AUTOMATIC TRANSFERS TO PROVINCIAL AND LOCAL GOVERNMENTS

ANALYSIS OF NON-AUTOMATIC TRANSFERS TO PROVINCIAL AND LOCAL GOVERNMENTS

by | Feb 26, 2024 | Specific Budget Issues

During 2023, budget transfers made by the National Government to provincial and local governments totaled ARS1,934.885 billion. That amount implied 1.01% of GDP, 0.27 percentage points below the average of the previous 8 years.

  • The amount is equivalent to 13.5% of the resource revenue sharing regime, a percentage that varies greatly among the provinces.
  • Current transfers reached ARS1,455.969 billion (0.76% of GDP) and capital transfers ARS478.916 billion (0.25% of GDP).
  • The Fiscal Strengthening Fund of the Province of Buenos Aires was eliminated by Executive Order 192/2024 dated February 26, 2024. It is estimated that if the Fund had remained in force, it would have received ARS873.765 billion (0.14% of GDP) during the current fiscal year.
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