Nicolas Perez - Oficina de Presupuesto del Congreso

PUBLIC DEBT OPERATIONS – JANUARY 2023

by Nicolas Perez | Feb 23, 2023 | Public Debt Operations

Securities totaling ARS677.398 billion were placed in two auctions.
A swap was offered with a 67% acceptance rate.
Amortizations were paid to the IMF for USD2.656 billion.
A total of USD1.022 billion of interest was paid on the securities issued in the 2020 restructuring process.
Between February and December, maturities are estimated for the equivalent of USD110.567 billion, of which 76% are payable in ARS.

MEETING OF THE PARLIAMENTARY OVERSIGHT COMMITTEE

by Nicolas Perez | Feb 23, 2023 | Activities

The Parliamentary Oversight Committee appointed María Eugenia David du Mutel de Pierrepont, until now in charge of the Directorate of Studies, Analysis and Evaluation, as general director of the OPC.

The appointment will be effective until the selection process for the renewal of the directors whose terms of office have expired are completed.

In accordance with the provisions of Law No. 27,343, which created the Argentine Congressional Budget Office, directors cease to hold office five years after their appointment following the selection process for their appointment.

The Parliamentary Oversight Committee formalized its decision through Resolution No. 1-CSP/ 23, after its first meeting of the year.

ANALYSIS OF NATIONAL TAX REVENUE – JANUARY 2023

by Nicolas Perez | Feb 22, 2023 | Tax Revenue

Tax revenues amounted to ARS2,265.962 billion in January 2023, which implied a growth of 93.4% year-on-year (YoY). Adjusted for inflation, it decreased 3.1% YoY.

Among the tax type revenues, the increase in real terms in VAT, because of the higher economic activity, and in Wealth Tax, favored by higher compensations made from VAT, stand out. Income Tax decreased slightly, since in this tax, such compensations were lower.

Export Duties were reduced because of lower volumes reported in the foreign sales affidavits (DJVE), given the end of the validity of the exceptional value for the liquidation of foreign currency within the framework of the Export Increase Program (DNU 787/2022).

On the other hand, Social Security contributions increased with respect to January 2022.

ANALYSIS OF NATIONAL GOVERNMENT BUDGET EXECUTION – JANUARY 2023

by Nicolas Perez | Feb 22, 2023 | Budget Execution

In January, mainly due to the contraction of expenditure, a primary surplus of ARS324.911 billion was recorded, 186.6% higher than in the same month of the previous year in real terms.

The financial and economic results were also positive, by ARS63.724 billion and ARS93.006 billion, respectively.
Total revenues expanded 0.3% in the year-on-year comparison, with a strong increase in property income, which grew 51.6% year-on-year (YoY).
This increase was insufficient to offset the decline in foreign trade duties.
Total expenditures fell 12.7% YoY and primary expenditure declined 13.9% YoY.
The largest decreases were recorded in economic subsidies and capital expenditures.
Social expenditures increased 12.1% YoY above inflation.
No expenditures were recorded in January for energy subsidies and railroad transportation subsidies, which were recorded in February.

ANALYSIS OF PUBLIC INVESTMENT BUDGET EXECUTION – 2022

by Nicolas Perez | Jan 24, 2023 | Public Investment

Public investment (PI) executed during 2022 showed a real fall of 38.3% compared to fiscal year 2021, basically due to lower capital transfers to trust funds, state-owned enterprises and provinces.

Transfers to trust funds (ARS254.372 billion) fell 55.8% year-on-year (YoY), mostly driven by the reductions in the PROCREAR program.
Transfers to the province of Buenos Aires decreased 43.2% YoY. Chubut, Córdoba, and Salta suffered more significant reductions.
Real direct investment fell 9.9% YoY, affecting the main item, which consists of projects for the construction and maintenance of highways and roads.
Despite the reduction in the last fiscal year, public investment remained at higher levels compared to the 2018-2020 triennium.

ANALYSIS OF PUBLIC INVESTMENT BUDGET EXECUTION - 2022

ANALYSIS OF NATIONAL GOVERNMENT BUDGET EXECUTION – 2022

by Nicolas Perez | Jan 19, 2023 | Budget Execution

During 2022, the primary and financial deficits were reduced with respect to the previous year, in relation to the Gross Domestic Product. To a large extent, the result was driven by a cut in primary expenditures, which reached 7.4% in the year-on-year comparison

On the other hand, the economic deficit reached 4% of GDP, higher than in the previous year.
The largest declines in primary expenditure were recorded in capital expenditures (37.6% YoY), goods and services (30.2% YoY) and economic subsidies (11.3% YoY).
Personnel expenses grew by 8.5% in real terms and pensions by 0.3%, basically due to the compensatory bonuses for the lowest benefits and the increase in the number of beneficiaries.
Pension benefits adjustments during the year were below inflation (62.7% YoY vs. 72.4% YoY) due to the application of the mobility formula.
In the last three years, expenditure on social programs increased by 1.2 percentage points of GDP, basically due to the increase in the number of beneficiaries.
Capital contributions to Aerolíneas Argentina (ARS72.908 billion) decreased 33.5% YoY.
Total resources fell 4.2%, basically because of lower collection of the Solidarity Contribution and SDRs.
Tax and Social Security revenues increased by 4.0% YoY and 4.1% YoY, respectively.
Export duties accounted for 17% of tax revenues: prices of soybean products rose, although sales abroad did not grow in real terms.
Collection of the Tax for an Inclusive and Solidarity-based Argentina increased by 80.1%.
Current appropriations increased by 68.2% during the year: interest on debt and social expenditures rose above this annual average.
Thirteen budget amendments were made, two by Necessity and Urgency Decree (DNU), which increased the financial deficit.