ANALYSIS OF NATIONAL GOVERNMENT BUDGET EXECUTION – FEBRUARY 2024

ANALYSIS OF NATIONAL GOVERNMENT BUDGET EXECUTION – FEBRUARY 2024

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.
THE OPC PRESENTED THE LATEST BUDGET EXECUTION REPORT TO LEGISLATORS

THE OPC PRESENTED THE LATEST BUDGET EXECUTION REPORT TO LEGISLATORS

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.

FISCAL IMPACT OF THE MAJORITY AND MINORITY COMMITTEE REPORTS ON BILL 5950-D-2022 – NATIONAL DANCE LAW

FISCAL IMPACT OF THE MAJORITY AND MINORITY COMMITTEE REPORTS ON BILL 5950-D-2022 – NATIONAL DANCE LAW

The majority committee report implies the creation of the National Dance Institute (INDa) as an autarkic entity within the scope of the Ministry of Culture of the Nation, with an allocation of resources estimated at ARS 2.881 billion in 2024. This amount arises from the reallocation of already existing tax resources and from the increase of 3 percentage points of the tax rate on sweepstakes games and sports contests.

On the other hand, the minority report does not entail any fiscal cost, since it provides for the creation of the National Dance Council within the scope of the Ministry of Culture of the Nation, without granting it autarchy and without enabling the creation of new budget items or the appointment or hiring of personnel.

Both reports agree in recognizing the cultural value of dance and the need for the activity to be promoted by the State.

FISCAL IMPACT OF THE MAJORITY AND MINORITY COMMITTEE REPORTS ON BILL 5950-D-2022 – NATIONAL DANCE LAW

FISCAL IMPACT OF THE CREATION OF THE NATIONAL DANCE INSTITUTE – BILL 5950-D-2022

The new text of the Bill specifies the composition of the governing body of the National Dance Institute, but not the entire staff.

Personnel and operating expenses are subject to this unspecified structure, so it is not possible to make an estimate of expenditures.

Annual revenues derived from the allocation of current taxes would total ARS1.618 billion at 2023 values, without considering other revenue sources, which are subject to future decisions.

FISCAL IMPACT OF THE MAJORITY AND MINORITY COMMITTEE REPORTS ON BILL 5950-D-2022 – NATIONAL DANCE LAW

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

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.
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