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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 NATIONAL GOVERNMENT BUDGET EXECUTION – YEAR 2023

by Nicolas Perez | Jan 17, 2024 | Budget Execution

During 2023, the National Government reduced its primary deficit by 0.3 p.p. of GDP and its financial deficit by 0.4 p.p. with respect to 2022. Such dynamics was the result of a contraction of primary expenditures (-7.0%) greater than that of resources (-5.9%).

Total resources fell by 5.9% due to lower revenues from Export Duties (-57.0% YoY) and Income Tax (-21.5% YoY), partially offset by higher revenues from PAIS Tax (+118.0% YoY) and VAT (+8.2% YoY).
Tax revenues reached 9.4% of GDP, 1.0 p.p. below 2022.
Non-tax revenues amounted to ARS308.651 billion from the awarding of 5G licenses, which boosted the increase (+61.2% YoY).
The largest declines in primary expenditures were recorded in Pensions (-6.1% YoY), Family allowances (-31.1% YoY), Energy subsidies (-26.5% YoY) and Capital expenditures (-12.9% YoY).
The purchasing power of pensions and family allowances was reduced by an average of 16.3% YoY, due to the application of the benefit adjustments under the “mobility formula”.
There was a lower financial assistance to CAMMESA (-34.8% YoY) and to ENARSA (-2.3% YoY), within the framework of the tariff segmentation policy implemented during 2023 and a lower value of natural gas imports, due to lower quantities and prices.
On the other hand, personnel expenses (+8.5% YoY), current transfers to provinces (+8.1% YoY) and transfers to universities (+6.2% YoY) increased.
Current appropriations increased by 39.3% during the year: transfers to provinces and social programs had increases above this annual average. Seventeen amendments were made, including two by means of Necessity and Urgency Decrees (DNU), which accounted for 83.1% of the increase in expenditure.