National Government Budget Execution Report – May 2019 – Accrual Basis

National Government Budget Execution Report – May 2019 – Accrual Basis

In May, the national government recorded a primary surplus of AR$23.99 billion but a financial deficit of AR$22.38 billion, within a framework of an acceleration in the fall of revenues in real terms. Expenditures, also in contraction, had the seventh month of decline measured against inflation.

In the term January-May, expenditures increased 40.8% year-on-year. Interest on debt, transfers to provinces and economic subsidies recorded the largest expansions in the period with 91.8%, 57.7% and 52.5% YoY, respectively. Social benefits (34.9% YoY), operating expenses (33.9% YoY) and capital expenditures (-13.0% YoY) were below the increase in total expenditure.

Social benefits account for 45.7% of the increase in total expenditure, while interest payments account for 30.7%. Both explain 76.4% of the increase in expenditure in the period under analysis.

  • National government revenues (40.5% YoY) again grew above expenditures (36.9% YoY), although the differential is reduced to 3.6 percentage points (p.p.) (5.2 p.p. in April).
  • Personnel expenditure recorded a real fall of 14.6% YoY, in line with the retraction experienced in the salaries of several sectors (SINEP).
  • After the first five months of the year, the financial balance is in deficit by AR$180.51 billion, reflecting a real reduction of 17.0% compared to the same period of the previous year.
  • So far this year, the expenditure components that grew the most were Debt Interest (91.8% YoY), Transfers to Provinces (57.7% YoY) and Economic Subsidies (52.5% YoY). At the other extreme, capital expenditure contracted 13.0% YoY in nominal terms.
  • The 76.3% of national government expenditure is rigid.
  • At the end of May, the execution level of total expenditure reached 35.4% with respect to the current appropriation, higher than the level observed during the same period of the previous year, which reached 32.3%.
Analysis of Public Social Spending included in 2019 National Budget Bill

Analysis of Public Social Spending included in 2019 National Budget Bill

This report analyzes the public social spending included in the 2019 National Budget Bill, from a financial and physical perspective.

For this purpose, public social spending is defined as the set of expenditures made by the National Government classified in purpose 3 as Social Services, which include expenditures related to the provision of health services, social promotion and assistance, social security, education and culture, science and technology, labor, housing and urban planning, drinking water and sewage and other urban services.

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