With a significant rebound in expenditure on housing and urban planning, public investment (PI) executed during the first half of 2021 amounted to ARS296.98 billion, which jumped 107.2% in real terms compared to the execution of the same period in 2020.

This improvement is explained both by the increase in capital transfers, which rose 132% year-on-year, and by the higher direct real investment, which jumped 63%.

Thus, the highest proportion of the last four years with respect to primary expenditure was reached: investment represented 7.7%.

  • It accrued 38% of current appropriations, a percentage that climbed to 47.2% in housing and urban planning, one of the most outstanding items, which showed a year-on-year increase of 560.2%.
  • The execution of investment projects involved 452 works for a total of ARS64.62 billion. Of the main 20 -which account for more than half of the funds-, 14 were for the construction of highways and freeways.
  • Buenos Aires and Córdoba were the main recipients of the transfers to provinces and municipalities, which increased by 312.4%.
  • Fifty-four percent of disbursements were concentrated in the Pampas Region, where investment grew by 145.4% YoY.
  • Domestic sources accrued 46.3% of funds and showed an increase of 148.6% YoY compared to the same period a year earlier.
Analysis of Budget Execution – July 2019 – Accrual Basis

Analysis of Budget Execution – July 2019 – Accrual Basis

A surplus of AR$43.42 billion was recorded in July, a considerable improvement over the previous year’s figure (-AR$1.9 billion). The financial balance is negative by AR$21.04 billion but implies a drop of 44.4% in real terms in the year-on-year comparison. Transfers to provinces showed a monthly year-on-year drop for the first time this year.

  • The increase in resources slowed down in July, although they grew again above expenditures (55.9% vs. 49.0%).
  • Tax revenues (58.8%) led total revenue growth, while debt interest (186.4%) and capital expenditures (152.9%) were the fastest growing components of public expenditure.
  • In the first seven months of the year, the financial balance was negative by AR$359.1 billion, an increase of 11.2% with respect to the same period of the previous year. In real terms, this represents a reduction of 27.9%.
  • During the first seven months of the year, 57.0% of total expenditure was accrued, identical to the level recorded in the same period a year ago.
  • From the beginning of the fiscal year to the end of July, the initial budget was increased by AR$88.3 billion, that is, 2.1%. The 39.2% of the amendments were implemented through the Necessity and Urgency Decree 193, while the remaining 60.8% were implemented through four Administrative Decisions.
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