Impuestos internos - Oficina de Presupuesto del Congreso

ANALYSIS OF NATIONAL GOVERNMENT BUDGET EXECUTION – FEBRUARY 2024

by Nicolas Perez | 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

THE OPC PRESENTED THE LATEST BUDGET EXECUTION REPORT TO LEGISLATORS

by Nicolas Perez | Feb 16, 2024 | Activities

The Argentine Congressional Budget Office presented the latest published report on the Analysis of the National Government Budget Execution – January 2024 to national legislators and their advisors.

This is one of the periodic works conducted by the OPC with the purpose of monitoring revenues collected and expenditures accrued.

The presentation was given by the OPC Director, Gabriel Esterelles, together with the directors of Sustainability and Public Debt Analysis, Joel Vaisman; of Fiscal and Tax Analysis, Martín López Amorós; of Budget Analysis, Ignacio Lohle, and the analyst of this last directorate, María Laura Cafarelli.

The purpose of the online meeting was to provide members of the Chamber of Deputies and the Senate, as well as their assistants, with technical elements to improve the understanding of the monthly report disseminated through the OPC web page, offering, at the same time, the possibility of clarifying doubts about the methodology used and the results obtained.

The good reception of this new work modality was the basis for the decision to repeat it periodically to consolidate the technical dialogue between the OPC and the National Congress.

ANALYSIS OF BILL “BASES AND STARTING POINTS FOR THE FREEDOM OF ARGENTINES” – REPORT 7 – TAX MEASURES – SECOND PART

by Nicolas Perez | Jan 17, 2024 | 25-PE-2023_ENG, Cost Estimates

The analysis refers to a set of sections that create a new regime for the regularization of assets, modifies the Wealth Tax and the Internal Taxes on cigarettes.

The proposed regularization, for residents and non-residents, would allow formalizing of assets up to USD100,000 without being taxed and, starting from that base, it provides for a tax to be settled in U.S. dollars.
If the “laundering” is of cash transferred to the Special Account for the Regularization of Assets, the tax will not apply.
The amount collected under the Asset Regularization Regime does not have a specific allocation, so its revenue would be shareable with the provinces.
It creates the Special Income Regime for Wealth Tax, establishing a scheme for the advance payment of five fiscal years.
The tables applicable to the Wealth Tax for assets in Argentina and abroad are unified and the maximum tax rate is reduced by 30%. In the future, a single rate of 0.5% will apply.
With the same stock of taxable assets in 2023, the collection in terms of GDP would drop from 0.68 to 0.19% over the next five fiscal years.
The ad valorem tax rate on cigarettes is increased by 4.29% (from 70% to 73%), and the minimum tax is eliminated.

FISCAL IMPACT OF THE CREATION OF THE NATIONAL DANCE INSTITUTE – BILL 5127-D-2022

by Nicolas Perez | Aug 22, 2023 | Cost Estimates

The Bill provides for the creation of the National Dance Institute, which would be financed with a portion of existing taxes or budgetary resources and other probable revenues whose estimation is not feasible prior to the creation of the Institute.

The tax resources involved in the initiative would range between ARS4.897 billion and ARS10.238 billion per year, depending on the base considered to quantify the main source: 1% of the “Net internal shared taxes”.
The difference depends on whether the full collection of this tax is considered or only the portion allocated to the National Treasury.
It was not possible to estimate expenditures due to the lack of data on personnel and staffing structure, but it is expected that the funds estimated would be sufficient to cover them.