Nicolas Perez - Oficina de Presupuesto del Congreso

ANALYSIS OF NATIONAL GOVERNMENT BUDGET EXECUTION – AUGUST 2022

by Nicolas Perez | Sep 15, 2022 | Budget Execution

For the first eight months of the year, the National Government recorded a real increase in its primary and financial deficits of 32.1% and 19.5%, respectively, compared to the same period of the previous year, given the dynamics between revenues and expenditures.

Despite the 7.0% year-on-year increase in Social Security contributions and 2.1% in tax revenues, current revenues fell 0.8%, basically due to the decrease in the payment of the Solidarity and Extraordinary Contribution.
Total expenditure amounted to ARS10,022.934 billion and grew at a rate of 3.4% YoY.
Primary expenditures expanded 3.7% YoY, mainly because of the variations registered in pensions benefits (2.7% YoY), energy subsidies (6.2% YoY), personnel expenses (14.4% YoY) and social programs (13.7% YoY).
From January to August, ARS14.463 billion were disbursed in “tourism promotion”, through the Pre-Viaje program (an increase of 835.3% year-on-year).
The extended budget appropriation increased by ARS5,521.535 billion, with significant increases in pensions, energy subsidies, personnel expenses, interest on public debt and social programs.
As of August 30, total expenditure accrued ARS10,022.934 billion, equivalent to 61.5% of the current budget appropriation. Programs such as Potenciar Trabajo and Alimentar were above the average level. On the other hand, some economic subsidies, goods and services and real direct investment were below the average.

ANALYSIS OF NATIONAL TAX REVENUE – AUGUST 2022

by Nicolas Perez | Sep 14, 2022 | Tax Revenue

Tax revenues amounted to ARS1,731.319 billion in August 2022, which implied a growth of 72.2% year-on-year (YoY). Adjusted for inflation, it contracted 3.5% YoY.

The difference in Income Tax and Wealth Tax maturities combined with the lower revenues from Export Duties contributed to this result. The non-updating of Fuel Taxes and the higher collections for Export Refunds had a similar effect. However, the recovery of the level of activity since March 2021, the increase in the international prices of commodities and the increase in the nominal exchange rate (39.2% YoY) mitigated the drop in revenues.

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

Income Tax showed its lowest growth so far this year and Wealth Tax decreased. In both cases there is a high base of comparison since in August 2021 the payment of tax returns for the year 2020 and the first advance payment for the year 2021 were paid together.

Foreign Trade duties continue to decrease due to negative weather effects that affected exports.

On the other hand, Social Security contributions showed a high year-on-year growth.

PUBLIC DEBT OPERATIONS – AUGUST 2022

by Nicolas Perez | Sep 13, 2022 | Public Debt Operations

Securities totaling ARS509.514 billion were placed in two auctions.
In addition, a security swap resulted in the placement of new dual bonds for US$13.742 billion.
There was a net cancellation of Temporary Advances for ARS10 billion.
Interest payments were made to the IMF for USD452 million.
September debt maturities are estimated at USD6.552 billion, including USD2.622 billion in payments to the IMF.

OPC’S DIRECTOR SPOKE AT THE 30TH ANNIVERSARY OF LAW 24,156 ON FINANCIAL ADMINISTRATION

by Nicolas Perez | Sep 7, 2022 | Activities

On Tuesday, September 6, OPC’s Director, Marcos Makón, spoke at the “30th Anniversary of Law 24,156 on Public Financial Administration and Control – Model, Challenges and Perspectives” which took place in the Auditorium of the HCDN (Chamber of Deputies of the National Congress).

The Conference included panels with different specialists in public financial administration who shared their opinions and experiences on the model, challenges, and perspectives introduced by the Law.

The organizing team of the Meeting included deputies Agustín Domingo (Provincias Unidas coalition), Ignacio Garcia Aresca (Federal coalition), Germana Figueroa Casas (Juntos por el Cambio), and senator Ricardo Guerra (Frente de Todos).

Marcos Makon (co-author of Law 24,156), Guillermo Schweinheim (Director of the Master’s Program in Government Auditing and Professor of Comparative Systems at UNSAM – National University of San Martín), Jorge Mauro Vega (Director of Planning of the Argentine Association of Budget and Public Financial Administration – ASAP), Oscar Lamberto (former National deputy , former National senator, former Secretary of Finance, and former President of the General Auditing Office of the Nation), Martín Di Bella (Director of Banco Nación), Jorge Sarghini (former Minister of Economy of the province of Buenos Aires, former Secretary of Finance of the Nation and former National deputy ), Jorge Brusa (economist specialized in Public Finance), Ricardo Gutierrez (main author of Law 24,156 and international consultant in Public Finance), and Jorge Domper (Undersecretary of Budget of the Nation), spoke as specialists on the subject.

The meeting was attended by legislators, advisors, and the general public. The contributions made by specialists with extensive academic and management experience provide a solid basis for conceiving scenarios for legislative modernization.

THE IMF’S NEW RST – SEPTEMBER 2022

by Nicolas Perez | Sep 1, 2022 | Public Debt Operations

The IMF announced a new credit line, the Resilience and Sustainability Trust (RST), with low interest rates and extended repayment terms.
The RST financing is focused on long-term goals (climate change and pandemics).
Argentina is eligible to request financing of up to USD1.3 billion.

THE OPC PARTICIPATED IN THE GENDER-RESPONSIVE BUDGETING COURSE ORGANIZED BY THE TRAINING INSTITUTE OF THE CHAMBER OF DEPUTIES

by Nicolas Perez | Aug 25, 2022 | Activities

The Director of Studies, Analysis and Evaluation of the OPC, María Eugenia David Du Mutel de Pierrepont, gave a presentation at the Gender-Responsive Budgeting Course organized by the Parliamentary Training Institute (ICAP) of the Chamber of Deputies of the Nation.

The course emphasized the inclusion of the gender perspective in the execution of the Public Budget, the main instrument of fiscal policy, which affects women, men and LGBTI+ population in a differentiated manner.

During her presentation, María Eugenia showed how the OPC analyzes the implementation of actions aimed at promoting the gender perspective in the allocation of budgetary resources. She also explained gender inequalities and the effects of taxation on them.

She also presented different approaches to the National Budget and Gender, and PPG (Gender-Responsive Budgeting), making a chronology of the PPG labeled expenditure from 2019 to date.
In addition, she presented the Gender-Responsive Budget Actions Monitor, a tool developed by the OPC that enables periodic monitoring of the progress of gender-responsive actions implemented by different agencies.

The OPC continues to work on the mandate established by law to promote the incorporation of the gender perspective in the allocation of budgetary resources with a view to providing information that will serve as a guide to reduce gender gaps within the public budget.