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.

ANALYSIS OF BILL “BASES AND STARTING POINTS FOR THE FREEDOM OF ARGENTINES” – REPORT 8 – NEW PENSION BENEFIT ADJUSTMENT FORMULA

ANALYSIS OF BILL “BASES AND STARTING POINTS FOR THE FREEDOM OF ARGENTINES” – REPORT 8 – NEW PENSION BENEFIT ADJUSTMENT FORMULA

The change proposed by the National Executive Branch implies adjusting the pension benefits by the current formula in the first quarter of the year and by the Consumer Price Index (CPI) as from April.

  • Applied to the year 2023, the formula currently in force results to be less beneficial.
  • The current formula resulted in a 32.2% deterioration of the purchasing power of pensions whereas the formula proposed by the Executive Branch would have reduced this loss to 22% YoY.
  • This calculation does not include bonuses but only the automatic application of the adjustment mechanisms.
  • If inflation were to decelerate during 2024, pensions would lose in the first quarter but would then tend to recover.
  • If no bonuses had been granted, the National Social Security Administration (ANSES) would have recorded a surplus equivalent to 0.2% of GDP last year instead of a deficit of 0.3%. With the proposed formula, the fiscal cost would reach 0.7 p.p. of GDP due to the higher expenditure on pension benefits.
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