Nicolas Perez - Oficina de Presupuesto del Congreso

FISCAL IMPACT OF BILL TO RELOCATE THE NATIONAL PARKS ADMINISTRATION’s head office TO THE PROVINCE OF SANTA CRUZ AND TO UPDATE FINES

by Nicolas Perez | May 2, 2022 | Cost Estimates

Bill S-341/2022 proposes the amendment of two Sections of the National Parks Law (Law No. 22,351).

By the first amendment, the National Parks Administration’s Head Office is to be relocated from the City of Buenos Aires to the City of El Calafate, Province of Santa Cruz. The second amendment provides for an update of fines for violations to the National Parks Law, which was last updated in 2004, by means of Executive Order No. 130/04.

The information required to quantify the fiscal impact of the relocation of the Head Office is not available. It is necessary to have additional data to be provided by the National Parks Administration to properly estimate the 2023 budget and, if applicable, to include additional appropriations. This information should include estimates for: personnel, place of operation, consumer goods and fixed assets.

In terms of resources, an increase in the collection of fines of 2,790% was estimated, which reflects the proposed percentage increase in the minimum and maximum fines amount. This adjustment would result in an estimated revenue equivalent to ARS 205.4 million, which would be updated annually using the value of the mobile unit.

ANALYSIS OF NATIONAL GOVERNMENT BUDGET EXECUTION – MARCH 2022

by Nicolas Perez | Apr 13, 2022 | Budget Execution

In the first three months of the year, total revenues of the National Government grew in real terms by 3.6% compared to the same period of the previous year.
Tax revenues increased by 2.3% year-on-year (YoY) and Social Security contributions by 7.2% YoY.
Primary expenditures grew 16.5% YoY, basically driven by energy subsidies, which increased by 90.1% YoY, social benefits, which increased by 9.0% YoY, and capital expenditures, which increased by 30.9% YoY.
Total expenditures, primary expenditures plus interest on debt, increased 18.0% YoY.
The primary deficit reached ARS392.842 billion and increased by 409.3% YoY in real terms, and the financial deficit (ARS659.926 billion) increased by 141.9% YoY.

PUBLIC DEBT OPERATIONS – MARCH 2022

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

Securities totaling ARS1.248 trillion were placed in four auctions.
IMF: a disbursement for USD9.655 billion was received and amortizations for USD2.778 billion were paid.
Paris Club: the term for the renegotiation of the debt was extended until June 2022.

ANALYSIS OF NATIONAL TAX REVENUE – MARCH 2022

by Nicolas Perez | Apr 6, 2022 | Tax Revenue

Tax revenue amounted to ARS1.241 trillion in March 2022, which implied a growth of 62.5% year-on-year (YoY). Adjusted for inflation, it expanded 6.5% YoY.

The recovery in the level of activity since March 2021, the increase in the international prices of commodities and the increase in the nominal exchange rate (20.2% YoY) contributed favorably to this result.

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

Likewise, duties on Foreign Trade and Social Security resources also showed a good performance.

MAIN FEATURES OF THE NEW PROGRAM WITH THE IMF

by Nicolas Perez | Mar 25, 2022 | Public Debt

The Government agreed a new program with the IMF that includes financing for USD44.4 billion, aimed at repaying the previous program and budget support.

It includes conditionalities that will be evaluated in quarterly reviews.

The main goals refer to the reduction of the deficit and the Central Banks’s financing, and the accumulation of international reserves.

For the remainder of 2022, net financing from the IMF for USD6.4 billion is expected. Up to 2027, interest payments to the IMF are estimated at USD1.6 billion per year.

MAIN FEATURES OF THE NEW PROGRAM WITH THE IMF

PUBLIC DEBT OPERATIONS – FEBRUARY 2022

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

Securities were placed by auction for ARS764.629 billion.
Marketable securities were cancelled for USD2.387 billion and loan amortizations for USD334 million were paid, including USD188 million to the Paris Club.
Interest was paid to the IMF for USD369 million.
An Extended Facilities program for USD44.5 billion was agreed with IMF staff.