Nicolas Perez - Oficina de Presupuesto del Congreso

ANALYSIS OF NATIONAL TAX REVENUE – SEPTEMBER 2022

by Nicolas Perez | Oct 18, 2022 | Tax Revenue

Tax revenues amounted to ARS2,127.181 billion in September 2022, which implied a growth of 117.9% year-on-year (YoY). Adjusted for inflation, it increased 19% YoY.

Higher revenues from Export Duties applicable to the soybean complex within the framework of the Export Increase Program (Executive Order 576/2022) explain this performance. The recovery of the activity level since March 2021 and the increase in the nominal exchange rate (46.1% YoY) contributed to this result. However, they generated an increase in Export Refunds, which had a negative impact on revenues.

Among tax resources, the increase in real terms in the PAIS Tax stands out, resulting from the return to foreign travel as COVID-19 restrictions were eliminated. Income Tax, VAT and Tax on Credits and Debits also increased because of the higher economic activity compared to 2021.

Wealth Tax decreased because of a high comparison base attributable to the difference in due dates that operated between fiscal periods.

On the other hand, Social Security contributions fell because of an increase in prices that exceeded the increase in the wage bill.

PUBLIC DEBT OPERATIONS – SEPTEMBER 2022

by Nicolas Perez | Oct 14, 2022 | Public Debt Operations

Securities for a total of ARS689.1 billion were placed in two cash subscription auctions.
Non-transferable bills were placed with the BCRA for USD2.732 billion related to the “soybean dollar” scheme.
Amortizations were paid to the IMF for USD2.596 billion.
At the beginning of October, a new disbursement of USD3.8 billion was received from the IMF.

BUDGET BILL 2023: PRESENTATION OF THE OPC TO THE CHAMBER OF DEPUTIES

by Nicolas Perez | Oct 12, 2022 | Activities

The Argentine Congressional Budget Office (OPC) participated in the debate on the 2023 Budget Bill in the Budget and Finance Committee of the National Chamber of Deputies.

The Director of the OPC, Marcos Makón, presented the reports prepared by the Office on the 2023 Budget Bill, a general description, its financing, and an analysis of the National Government’s public investment. María Eugenia David Du Mutel de Pierrepont (Director of Studies, Analysis and Evaluation), Mariano Ortíz Villafañe (Director of Public Debt Analysis and Sustainability) and the Office’s analysts also attended on behalf of the OPC.

After the presentation, the deputies asked questions that were answered by OPC representatives. The Committee chaired by Deputy Carlos Heller will continue its treatment of the Budget Bill for 2023 during the next few days.

(Photo: HCDN Press and Dissemination Office)

BUDGET BILL 2023 – FINANCING

by Nicolas Perez | Oct 11, 2022 | Public Debt

The main source of net financing in 2023 is the placement of securities in domestic currency (for 4.7% of GDP).
Net placements of Temporary Advances are expected to amount to 0.6% of GDP.
Net financing from international credit organizations will amount to 0.1% of GDP.
The expenditure on interest of the National Non-Financial Public Sector is estimated at 2% of GDP.

BUDGET BILL 2023 – FINANCING

BUDGET BILL 2023 –NATIONAL GOVERNMENT PUBLIC INVESTMENT

by Nicolas Perez | Oct 11, 2022 | Public Investment

Although it is constant in relation to the Gross Domestic Product, the public investment forecast for fiscal year 2023 will have a real increase of 4.8% compared to the closing projection for 2022 and will amount to ARS2,261.580 billion.

Almost half of the public investment financed with resources from the National Government is allocated to state-owned enterprises and trust funds.
Energías Argentinas SA (ENARSA) is the main recipient of these funds (ARS355.020 billion), allocated to the construction of gas pipelines and the Kirchner-Cepernic dams on the Santa Cruz River.
Next in order of budgetary importance are the appropriations for the Pro.Cre.Ar Trust Fund (ARS183.094 billion).
Transfers to provinces and municipalities will contract by 20.1%.
China Development Bank (CDB) and the Inter-American Development Bank (IDB) are the main external sources of financing.
A total of 68.2% of the Real Direct Investment is for investment projects, which require a total of ARS489.252 billion. Almost half of this budget (44.0%) is allocated to 20 projects.
The Conectar Igualdad program leads the procurement of capital goods, the second component of Direct Real Investment.
The rehabilitation of the San Martín Railroad is the most important multi-year work with ARS115.687 billion.
In the Consolidated Public Sector investment, state-owned enterprises gain share to the detriment of the National Administration investment.

BUDGET BILL 2023 –NATIONAL GOVERNMENT PUBLIC INVESTMENT

GENERAL DESCRIPTION OF THE CONTENTS OF THE 2023 NATIONAL GOVERNMENT BUDGET BILL

by Nicolas Perez | Oct 11, 2022 | Budget Law

The Budget Bill for fiscal year 2023 estimates revenues totaling ARS22,304.058 billion, 1.1% higher in real terms with respect to the previous year and equivalent to 15.2% of GDP.

Total expenditure will decrease by 2.8% year-on-year (YoY) in constant currency and by 1.0 point in terms of GDP. Due to lower subsidies and social benefits, the primary expenditure will fall 4.3% YoY.

Debt interest payments are projected at ARS2,656.308 billion, with a real increase of 15.1% YoY.

Deficits will be more moderate than those of 2022: the primary deficit will be equivalent to 2.5% of GDP (3.6% of GDP in 2022), the financial deficit to 4.3% of GDP (5.2% in 2022) and the economic deficit to 2.8% of GDP (3.7% in 2022).

To cover the negative balances, financial sources estimated at ARS30,194.668 billion and financial applications forecast in the amount of ARS23,794.816 billion will be used.