PROGRESS REPORT ON THE BILL OF THE GENERAL BUDGET OF THE NATIONAL GOVERNMENT FOR THE YEAR 2025

PROGRESS REPORT ON THE BILL OF THE GENERAL BUDGET OF THE NATIONAL GOVERNMENT FOR THE YEAR 2025

by | Aug 15, 2024 | Budget Law

The report basically summarizes macroeconomic projections for the current year, budget execution through May 2024, estimated revenues and financing strategy for 2025, and government employment management. The description of the scenario and the budgetary policy proposals refer to:

  • In the first five months a primary surplus of 1.1% of Gross Domestic Product (GDP) and a financial surplus of 0.4% of GDP were achieved, after debt interest payments.
  • In 2024, GDP will fall by 3.5%.
  • The trade surplus will exceed USD 21 billion.
  • Zero deficit and sustained fiscal balance is a political priority. Also, the social assistance without intermediaries, the modernization and simplification of the State and the equipment and modernization of security and defense.
  • National revenue will increase 54.4% next year and the tax burden will be reduced by 0.45 percentage points.
  • The maturity profile is expected to be extended and the financial burden on the Treasury’s accounts is expected to be reduced.
PROGRESS REPORT ON THE BILL OF THE GENERAL BUDGET OF THE NATIONAL GOVERNMENT FOR THE YEAR 2025

FISCAL IMPACT OF BILLS ON PENSION BENEFIT ADJUSTMENT – REPORT OF PROPUESTA REPUBLICANA (PRO)

by | May 15, 2024 | Cost Estimates

This report complements the report published by the OPC on May 2, 2024, entitled “Fiscal impact of bills on pension benefit adjustment – Reports from the Committee on Social Security ”1 and includes the Report submitted by Propuesta Republicana (PRO).

For the purpose of estimating the fiscal impact of each Committee Report, a comparison is made between the pension benefit adjustment formula being proposed in each bill and the adjustment formula in force, approved by Decree of Necessity and Urgency (DNU) 274/24. Likewise, a comparison is made with the formula in force up to March of the current year, established by Law 27,609.

The analysis is based on the macroeconomic assumptions made by the Ministry of Economy for the fiscal year, considering that the new regulation would be applied as from May. The formula under Law 27,609, was applied from January to March, and the one provided for by DNU 274/24 was applied in April.

 

The formula provided for in the bill establishes an expenditure equivalent to 7.21% of GDP (including bonuses), which would imply 0.38 p.p. more than the formula under Law 27,609 and 0.07 p.p. more than with the formula of DNU 274/24. In addition, the bill requires the National Executive Branch to cover the fiscal cost associated with the measures provided by means of a reduction in tax expenditures, as established in Section 2 of Regulatory Decree 1,731/2004.

PROGRESS REPORT ON THE BILL OF THE GENERAL BUDGET OF THE NATIONAL GOVERNMENT FOR THE YEAR 2025

FISCAL IMPACT OF BILLS ON PENSION BENEFIT ADJUSTMENT – REPORTS FROM THE COMMITTEE ON SOCIAL SECURITY

by | May 2, 2024 | Cost Estimates

This report analyzes the fiscal impact of four bills proposing amendments for the pension benefit adjustment formula currently in force, based on the reports of the Committee on Social Security of the Chamber of Deputies.

For the purpose of estimating the fiscal impact of each Committee Report, a comparison is made between the pension benefit adjustment formula being proposed in each bill and the adjustment formula in force, approved by Decree of Necessity and Urgency (DNU) 274/24. Likewise, a comparison is made with the formula in force up to March of the current year, established by Law 27,609.

The analysis is based on the macroeconomic assumptions made by the Ministry of Economy for the fiscal year, considering that the new regulation would be applied as from May. The formula under Law 27,609, was applied from January to March, and the one provided for by DNU 274/24 was applied in April.

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