marcos makon - Oficina de Presupuesto del Congreso

FISCAL IMPACT OF BILL ON THE CREATION OF A REGISTRY OF ENERGY-INTENSIVE IRRIGATORS (S-0024/2020)

by Juan Fourcaud | Oct 22, 2020 | Cost Estimates

The Bill proposes the creation of a Registry of agricultural producers that use irrigation with intensive electric energy consumption and provides for a set of tax measures to encourage those producers to replace that system for less energy-demanding irrigation technologies.

The benefits included in the Bill are a reduction in the VAT rate for the purchase of electric energy, reduction in current energy rates and access to credit lines for energy reconversion.

The analysis carried out by OPC shows that the direct fiscal impact is very low, since the VAT reduction mechanism on purchases of certain links in the production chain only has a financial impact for the taxpayers subject to that tax.

Analysis of Tax Revenue – February 2019

by Nicolas Perez | Feb 7, 2019 | Tax Revenue

This report analyzes tax revenues for the first month of the year and outlines the scenario for the whole of 2019.

National tax revenue in January 2019 totaled AR$363.92 billion, showing a year-on-year increase of 38.9% in nominal terms, which implied a drop of 6.7% in real terms.

As for the projection for the year, after the submission of the 2019 Budget, three regulatory amendments were introduced with a significant impact on the national tax revenue for 2019.

These amendments have an almost neutral net impact on the projected revenue: a reduction of AR$3.83 billion, which is equivalent to 0.1% of the total projected amount.

Analysis of National Tax Revenue – Annual Closing 2018

by Nicolas Perez | Jan 31, 2019 | Tax Revenue

National tax revenue totaled $3.82 trillion in 2018, an increase in nominal terms of 31.2% with respect to 2017.

In terms of inflation-adjusted revenue, there was a drop of 1.8% year-on-year, the third consecutive year showing this trend.

Measured in terms of Gross Domestic Product, revenue was 24.1% of GDP, 0.3 percentage points below that recorded in 2017, continuing the trend started in 2016.

As for the allocation of tax revenue, the national government and the social security system received less resources for the equivalent of 0.3% of GDP each, which contrasts with the increase of 0.4% of GDP that was allocated to the provinces.

National Government Budget Execution – November 2018

by Nicolas Perez | Dec 18, 2018 | Budget Execution

In November, the National Government primary deficit was AR$ -39.8 billion, 240% higher than in the same month of the previous year, while the financial deficit reached AR$ -55.6 billion, increasing by 70% the negative performance with respect to November 2017.

Total expenditure grew 8.3 percentage points above total revenues, basically boosted by a rise in economic subsidies.

In the cumulative of the first eleven months of the year, the negative primary balance was 34% lower in real terms than that recorded in the same period of the previous year, while the financial balance increased by 0.4%. At the end of November, the initial budget appropriation increased by 20% by virtue of Necessity and Urgency Decrees and Administrative Decisions.

Fiscal Impact of Bill on a Federal Regime for Socio-Labor Insertion

by Nicolas Perez | Nov 23, 2018 | Cost Estimates

Tax benefits for employers, included in the Bill on a Federal Regime for Socio-labor insertion for People with Disabilities, would cause an estimated negative fiscal impact of AR$1.72 billion in the first year and AR$1.46 billion in the following years.

The benefit of paying half of the employer’s contributions will be in force only for the first year. Throughout the employment relationship, the employer will be able to deduct the entire amount of the wages subject to the Income Tax regime.

Analysis of the National Government Financial Program – Recent Changes

by Nicolas Perez | Nov 6, 2018 | Public Debt

The renegotiation of the stand-by arrangement with the International Monetary Fund (IMF) resulted in a reformulation of the 2019 Financial Program with respect to the version included in the Budget Bill.

With the new arrangement, the IMF will increase its disbursements by USD7.6 billion this year and USD11.1 billion next year. The IMF assistance will cover 54% of next year’s financial needs, a figure that will drop to 14.7% in 2020.