FISCAL IMPACT OF BILL ON THE CREATION OF THE LAGUNA EL PALMAR NATIONAL PARK AND NATIONAL RESERVE IN THE PROVINCE OF CHACO – MAY 2022

FISCAL IMPACT OF BILL ON THE CREATION OF THE LAGUNA EL PALMAR NATIONAL PARK AND NATIONAL RESERVE IN THE PROVINCE OF CHACO – MAY 2022

Bill S-2553/2021 creates the Laguna El Palmar National Park and National Reserve in the Department of Bermejo, Province of Chaco, in accordance with the terms of National Law No. 22,351 on the Legal Regime of National Parks, Natural Monuments and National Reserves.

An analysis of the current programs of the National Parks Administration showed that the last three parks were created in 2018. Although each park has different characteristics and dimensions, it was possible to find some similarities, for example, they did not show any execution during the year of creation (2018) and did not accrue personnel expenses until the third or fourth fiscal year.

Based on the information provided by the Northern Regional Directorate of the National Parks Administration, expenditure for operating expenses is estimated to be around ARS18.9 million. Additionally, once the park’s organizational structure is approved, personnel expenses would amount to ARS12.4 million annually, at May 2022 values, for a staff of 10 agents.

FISCAL IMPACT OF BILL ON THE CREATION OF THE LAGUNA EL PALMAR NATIONAL PARK AND NATIONAL RESERVE IN THE PROVINCE OF CHACO – MAY 2022

FISCAL IMPACT OF BILL ON HISTORICAL REPARATIONS TO THE VICTIMS OF THE REPRESSION OF DECEMBER 19 AND 20, 2001

The purpose of Bill PE 198-21 is to grant a one-time extraordinary benefit to those who died or suffered serious injuries because of the repression carried out by the Government during the protests held throughout the national territory on December 19 and 20, 2001, within the framework of the state of siege declared by means of Executive Order 1,678/2001. The benefit would be granted to the injured or the rightful beneficiaries of the deceased victims.

As stated in the Bill, 39 people lost their lives and more than one hundred were injured throughout the country.

To estimate the fiscal impact of the Bill, a maximum assumption is made, where all beneficiaries of the 39 deceased persons, as well as those severely injured, comply with all the requirements set forth in the Bill, apply for the benefit and the Ministry of Justice and Human Rights, the competent authority, grants it to them. It is considered that in all cases the full amount of the benefit is received.

The expenditure that the Bill under analysis would require if approved during the current fiscal year and under the assumptions made, would amount to ARS 1.538 billion at May 2022 values.

For beneficiaries of deceased persons, the benefit amount would be of ARS14.1 million, and for those severely injured, the benefit amount would be of ARS9.9 million (equivalent to that provided for beneficiaries of deceased persons, reduced by 30%).

PUBLIC DEBT OPERATIONS – APRIL 2022

PUBLIC DEBT OPERATIONS – APRIL 2022

  • Two auctions were held in April, resulting in the placement of government securities for a total of ARS718.483 billion.
  • Net Temporary Advances for ARS80 billion were placed.
  • May debt maturities are estimated at USD8.502 billion, of which USD340 million are interest payments to the IMF.
  • The first review of the IMF program targets is scheduled for May. Approval would enable a disbursement of USD4.017 billion.
IMPACT OF THE ALIMENTAR FOOD CARD ON POVERTY AND INDIGENCE– MAY 2022

IMPACT OF THE ALIMENTAR FOOD CARD ON POVERTY AND INDIGENCE– MAY 2022

This report analyzes the impact of the Alimentar Food Card on the indicators of living conditions of the population and households in 2021.

If families did not receive financial assistance through the Alimentar Card, household poverty and indigence rates would be 2.2% and 10.7% higher than those recorded, respectively.

Likewise, when analyzing the effect of the Alimentar Card together with other benefits (AUH and PNC for mothers), it is estimated that, without government assistance, poverty and indigence rates would be 5.2% and 39.4% higher, respectively.

The budgetary efforts made by the national government to contribute to food security have had a positive impact on reducing the country’s poverty and indigence rates.

ANALYSIS OF NATIONAL GOVERNMENT BUDGET EXECUTION – APRIL 2022

ANALYSIS OF NATIONAL GOVERNMENT BUDGET EXECUTION – APRIL 2022

In April, the primary deficit grew 143.8% compared to the same month of last year, largely because of the increase in social spending which, to maintain its current execution rate, will require budget reinforcements.

  • National Government revenues totaled ARS 851.515 billion and remained unchanged in real terms: the drop in tax revenue was offset by an improvement in Social Security contributions.
  • Primary expenditures totaled ARS 1.023,084 trillion and expanded by 11.0% YoY, mainly driven by energy subsidies (53.4% YoY) and social benefits (8.6% YoY).
  • Pension amounts increased by 7% YoY and debt interest payments decreased, which contained the increase in total expenditure by 6.4% YoY.
  • In the first four months of the year, current revenues grew by 2.9% YoY and current expenses grew by 14.6% YoY.
  • The primary deficit was ARS 171.569 billion, the financial deficit was ARS 206.249 billion (44% YoY) and the economic result was negative by ARS 122.473 billion (73.7% YoY higher).
  • In the first four months of the year, the execution of expenditures in the Progresar educational grants (84.3%) and the Potenciar Trabajo program (50.9%) stood out.
ANALYSIS OF NATIONAL TAX REVENUE – APRIL 2022

ANALYSIS OF NATIONAL TAX REVENUE – APRIL 2022

Tax revenue totaled ARS1.341,595 trillion in April 2022, which implied a growth of 64% year-on-year (YoY). Adjusted for inflation, it expanded 4.9% YoY.

The recovery in the level of activity since March 2021, the increase in international commodity prices and the increase in the nominal exchange rate (22% YoY) contributed favorably to this result.

Among tax resources, the increase in real terms in the PAIS Tax stands out due to the return to foreign travel as COVID-19 restrictions are lifted. The Tax on Credits and Debits, Income Tax and VAT also recorded significant growth.

Duties on Foreign Trade decreased, because of lower export quantities and trade union conflicts that affected the normal operation of the agro-export sector.

Social Security contributions showed high year-on-year growth.

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