PROGRESS REPORT ON THE BILL OF THE GENERAL BUDGET OF THE NATIONAL GOVERNMENT FOR THE YEAR 2025

PROGRESS REPORT ON THE BILL OF THE GENERAL BUDGET OF THE NATIONAL GOVERNMENT FOR THE YEAR 2025

The report basically summarizes macroeconomic projections for the current year, budget execution through May 2024, estimated revenues and financing strategy for 2025, and government employment management. The description of the scenario and the budgetary policy proposals refer to:

  • In the first five months a primary surplus of 1.1% of Gross Domestic Product (GDP) and a financial surplus of 0.4% of GDP were achieved, after debt interest payments.
  • In 2024, GDP will fall by 3.5%.
  • The trade surplus will exceed USD 21 billion.
  • Zero deficit and sustained fiscal balance is a political priority. Also, the social assistance without intermediaries, the modernization and simplification of the State and the equipment and modernization of security and defense.
  • National revenue will increase 54.4% next year and the tax burden will be reduced by 0.45 percentage points.
  • The maturity profile is expected to be extended and the financial burden on the Treasury’s accounts is expected to be reduced.
PROGRESS REPORT ON THE BILL OF THE GENERAL BUDGET OF THE NATIONAL GOVERNMENT FOR THE YEAR 2025

FISCAL IMPACT OF BILL S-2524-23 ON THE REPEAL OF THE AVIATION SECURITY TAX

The aviation security tax paid by passengers on domestic and international flights to the Airport Security Police (PSA, by its initials in Spanish), the collection of which is not part of any item detailed in the national budget, is proposed to be eliminated.

  • According to PSA data, ARS4.901 billion were collected in 2023 and ARS8.94 billion are expected to be collected in 2024, based on the projection of the collection for the January-March term (ARS2.789 billion).
  • The resources are earmarked for the maintenance and updating of equipment for the optimization and modernization of the infrastructure and operating methods of the airport security system, but cannot finance the hiring of personnel for the provision of PSA services or the granting of incentives to its agents.
  • In 2023 revenues from the aviation security tax represented 9.5% of the total budget executed by the agency.
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