BUDGET BILL 2021 – PRELIMINARY APPROVAL BY THE CHAMBER OF DEPUTIES

BUDGET BILL 2021 – PRELIMINARY APPROVAL BY THE CHAMBER OF DEPUTIES

by | Nov 4, 2020 | Budget Law

On October 28, the Chamber of Deputies gave preliminary approval to the National Budget Bill for 2021, after the introduction of several amendments whose impact on total national resources projected is estimated at AR$13.29 billion, which is equivalent to 0.04% of the Gross Domestic Product (GDP).

The amendments introduced represent an increase of expenditures of AR$295.6 billion, of which AR$35.04 will be financed by reductions in budget appropriations foreseen for items defined in the preliminary approval. Therefore, the net increase reaches AR$260.56 billion, equivalent to 0.7% of GDP. This net increase must be financed with reallocations of existing budget appropriations and implemented by means of an Administrative Decision of the Chief of Cabinet of Ministers, as set forth in the Bill.

BUDGET BILL 2021- PUBLIC INVESTMENT

BUDGET BILL 2021- PUBLIC INVESTMENT

by | Oct 16, 2020 | Budget Law

National government’s public investment foreseen in the 2021 Budget Bill will increase to 2.0% of the Gross Domestic Product, 0.6% higher in terms of GDP and a real increase of 51,3% YoY in allocated resources. Transfers to other jurisdictions gain relative share and works related to transportation and housing stand out.

  • Public investment in 2021 would change in its composition in relation to the projected closing for this year, with an increase from 59.4% to 62% of capital transfers to the detriment of real direct investment.
  • Public investment increases in all regions of the country, but mainly in interprovincial or national jurisdiction – categorized as “unspecified” -followed by the Pampas region.
  • The function Transportation will have a real increase of 58.1% YoY, mostly due to works within the scope of the National Road Authority (Dirección Nacional de Vialidad) and the purchase of railway equipment by the Ministry of Transportation.
  • The provinces that explain the year-on-year increase in real direct investment are in the Pampas region: Province of Buenos Aires (121.1% YoY), and in the Northwest Region: Salta (808.4% YoY) and Jujuy (444.6% YoY).
  • The Province of Buenos Aires continues being the main recipient of investment projects, with 37.9% of total resources, a concentration even higher than that estimated for the closing of 2020 fiscal year.
  • The two projects that require more resources are the renewal of Belgrano Cargas railroad tracks and the improvement of the Roca Urban Railway, branch Constitución-La Plata.
  • Transfers for Education and Culture are equivalent to 12.3% of total capital transfers, but represent a real increase of 333.9% YoY, basically due to the improvement of kindergartens’ infrastructures.
  • Deconcentration in the execution of public works is being consolidated.
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