Nicolas Perez - Oficina de Presupuesto del Congreso

FISCAL IMPACT OF THE PRELIMINARY DRAFT OPINION ON EQUAL PARENTAL LEAVE – ANALYSIS OF AMENDMENTS, ADDITIONS OR CLARIFICATIONS INTRODUCED

by Nicolas Perez | Jul 20, 2023 | Cost Estimates

The analysis of the amendments, additions, or clarifications to the preliminary draft opinion on leaves complements the study conducted by the OPC on June 22, 2023, using the new wording of the draft opinion. The following are the changes with respect to the previous document:

Inclusion of self-employed individuals as potential beneficiaries of parental allowances whose monthly amount will be equivalent to the Minimum, Vital and Mobile Net Wage in force in each period (added).
Possibility of receiving parental allowances for pregnant and non-pregnant persons simultaneously by both parents (clarification).
Financing of employer’s social security contributions through the resources of the Family Allowances regime (clarification).

If a financing mechanism for the Pension System similar to the one provided for in the Bill for the Social Security Health Insurances were applied, the budgetary impact for the National Government would then reach ARS113.458,99 billion, which is equivalent to 0.068% of the expected GDP for 2023, since the personal contributions of those who receive the allowances would enter the ANSES (National Social Security Administration), thus generating an income for the National Government.

PRESENTATION OF THE ENERGY SUBSIDY MONITOR TO PARLIAMENTARY ADVISORS

by Nicolas Perez | Jul 17, 2023 | Activities

The Argentine Congressional Budget Office (OPC) held a training meeting with parliamentary advisors to explain the content and dynamics of a new information tool.

The National Government Energy subsidies monitor, which has been recently published on the OPC’s website, details the evolution of these subsidies for the 2006-2023 term, disaggregated by month and recipient.

The new interactive tool also allows tracking the physical and financial execution of subsidies, with values expressed in current USD, current ARS, and constant ARS, and includes indicators referring to natural gas and electricity tariffs and production costs.

The presentation was given by analyst Pablo Barousse at the OPC’s headquarters and was attended by advisors from the Budget and Finance and Energy Committees of the Chamber of Deputies and the Senate.

The training will enable those who support the daily work of legislators to optimize the use of the monitor, which offers historical and current data on issues concerning the economic reality.

ANALYSIS OF NATIONAL GOVERNMENT BUDGET EXECUTION – JUNE 2023

by Nicolas Perez | Jul 14, 2023 | Budget Execution

Despite the decrease in revenues, in the first six months of the year the National Government recorded a real drop in the economic, primary, and financial deficits.

The financial deficit for the first half of the year was 14.0% lower in real terms than in the same period of the previous year.
The primary deficit -which does not include interest payments- fell by 26.2% in real terms.
Revenues contracted by 5.3% YoY in real terms and total expenses by 7.8% YoY.
Tax revenues fell 10.1% YoY, partially offset by a 1.6% YoY improvement in social security revenues. However, in June, for the first time in the year, social security contributions fell compared to the same month of last year.
Primary expenditures fell 9.8% YoY in the accumulated to June, a contraction led by the reduction in energy subsidies (27.3% YoY), in social benefits (10.0% YoY) and in transfers to provinces (25.3% YoY).
Personnel expenses (8.0% YoY), transfers to universities (8.0% YoY) and subsidies to the transportation sector (15.1%) expanded in the comparison between both half-year periods.
On a month-on-month basis, primary expenditures showed twelve months of consecutive declines.
Debt interest payments rose 18.3% YoY.
The Progresar student grants and the Acompañar program showed positive real variations, unlike other large social programs.

ANALYSIS OF NATIONAL GOVERNMENT BUDGET EXECUTION – JUNE 2023

PUBLIC DEBT OPERATIONS – JUNE 2023

by Nicolas Perez | Jul 13, 2023 | Public Debt Operations

Government securities for ARS9.017,678 billion were placed in three auctions.
A total of USD2.676 billion in amortizations were paid to the IMF.
There were net placements of BCRA (Central Bank) Temporary Advances for ARS688 Billion, increasing the stock to ARS4.15 trillion.

PUBLIC DEBT OPERATIONS - JUNE 2023

FISCAL IMPACT OF THE PRELIMINRY BILL ON EQUAL PARENTAL LEAVE

by Nicolas Perez | Jun 22, 2023 | Cost Estimates

The purpose of the preliminary Bill on Equal Parental Leaves is to introduce amendments regarding leaves of absence for people working under employment relationship in the formal sector, covered by the Labor Contract Law 20,744, Law 26,844 on the Special Regime of Labor Contract for the Personnel of Private Houses, and Law 26,727 of the Agricultural Work Regime, as well as to make amendments to Law 24.241 of the Integrated System of Retirement and Pensions and to the regulations related to Social Security, Prepaid Health Insurance Companies and the personnel of the National Public Administration.

The proposed amendments would generate a fiscal impact resulting from the parental allowances either due to the need to cover more leave days with respect to the current regulation or due to the creation of new leaves of absence not previously provided for.

The fiscal impact of the legislative proposal was estimated at an approximate expenditure of ARS75.604 billion, which is equivalent to 0.045% of GDP for 2023.

PUBLIC DEBT OPERATIONS – MAY 2023

by Nicolas Perez | Jun 21, 2023 | Public Debt Operations

Government securities for ARS1,569.026 billion were placed in two auctions.
Interest for USD743 million was paid to the IMF.
There were net placements of BCRA Temporary Advances for ARS440 billion, the stock increased to ARS3.46 trillion.
Between June and December, maturities are estimated for the equivalent of USD44.2 billion.