Nicolas Perez - Oficina de Presupuesto del Congreso

ANALYSIS OF NATIONAL GOVERNMENT BUDGET EXECUTION – FEBRUARY 2022

by Nicolas Perez | Mar 10, 2022 | Budget Execution

Despite a year-on-year increase in revenue of 11.2% in real terms, the primary and financial deficits of the National Government increased in February with respect to the same month of the previous year.

Tax revenue increased by 13.0% year-on-year (YoY) and Social Security contributions by 9.0% YoY.
Revenue from the PAIS tax increased by 119.6% YoY and that from the Tax on Bank Debits and Credits by 48.2% YoY.
Primary expenditures grew 14.3% YoY, basically driven by energy subsidies, which increased 109.6% YoY.
The primary deficit increased by 31.6% YoY in real terms and the financial deficit increased by 13.1% YoY reaching ARS217.498 billion.
Debt interest fell by 15.9% YoY because of the decrease in payments of peso-denominated obligations.
As of February 28, total expenditure accrued ARS1.846,988 trillion, equivalent to 17.1% of the current budget appropriation.
Expenditure on debt interest was 26.2% of the current appropriation. In contrast, real direct investment was 8.1%, comparable to pre-pandemic records.

ANALYSIS OF NATIONAL TAX REVENUE – FEBRUARY 2022

by Nicolas Perez | Mar 7, 2022 | Tax Revenue

Tax revenue amounted to ARS1.166,514 trillion in February 2022, which implied a growth of 62.8% year-on-year (YoY). Adjusted for inflation, it expanded 8.2% 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 (19.9% YoY) contributed favorably to this result.

Among tax resources, increases in real terms in the Tax on Credits and Debits, Income Tax, and VAT stand out. Foreign Trade duties and Social Security resources showed a good performance.

BUDGET EXECUTION OF NATIONAL SOCIAL INVESTMENT IN PERSONS WITH DISABILITIES – DATA AS OF DECEMBER 31, 2021

by Nicolas Perez | Feb 15, 2022 | Policies on specific population groups

Based on the latest data available from INDEC, 9.4% of the Argentine population suffers from some type of disability, a limitation that affects about 4,300,000 citizens and that is mainly present in the last stage of their working life.

Expenditure for persons with disabilities amounted to ARS353.365,64 billion in 2021 representing 3.3% of the National Government expenditure and 0.8% of Gross Domestic Product.

The National Disability Agency (ANDIS) concentrated 84.3% of the resources, followed by the National Social Security Administration (ANSES) with 13.1%.

Non-contributory pensions for occupational disability accounted for the largest budget (81% of the total ANDIS budget and 68.7% of total labeled expenditure). Government investment is centralized and has a welfarist profile, which is not strictly in accordance with the provisions of international agreements.

This situation is confirmed by the policies of ANSES and the Ministry of Social Development through the granting of family allowances and universal allowances for children with disabilities and the provision of food cards.

Legislation on the subject is profuse, but the labeling of the budget activities in this field is limited to evaluate the policies implemented.

BUDGET EXECUTION OF NATIONAL SOCIAL INVESTMENT IN PERSONS WITH DISABILITIES

BUDGET EXECUTION OF GENDER-SENSITIVE ACTIVITIES IN 2021

by Nicolas Perez | Feb 14, 2022 | Gender

The accrued expenditure of the activities identified by the Executive Branch with the initials PPG (Gender-Responsive Budgeting) represented 17% of the total National Government expenditure and increased 18% with respect to the original forecast contained in the Budget Law for the fiscal year 2021. This increase is below the average of the rest of the central government’s expenditures.

Ninety-nine percent of PPG expenditure was allocated to strengthen the economic autonomy of women and other genders through direct monetary transfers.
All benefits granted by ANSES were executed in accordance with what was authorized by the Congress.
The Alimentar Card and the Potenciar Trabajo program more than doubled their original budgets and expanded the universe of beneficiaries.
The gender-based violence dimension increased its budget by 142%, basically because of the funds allocated as of October to the Acompañar program, which amounted to ARS13 billion.
Sexual and reproductive health activities showed an average drop of 15.5% in their budgets.

BUDGET EXECUTION OF GENDER-SENSITIVE ACTIVITIES IN 2021

PUBLIC DEBT OPERATIONS – JANUARY 2022

by Nicolas Perez | Feb 11, 2022 | Public Debt Operations

Two auctions were held in January, resulting in the placement of government securities in domestic currency for ARS437.49 billion.

During the month, net placements of BCRA Temporary Advances (TA) for ARS122 billion were recorded, increasing the stock to ARS2.30 trillion.

To partially finance the January 28 principal payment of the IMF Stand-By loan for USD713 million, a Treasury Bill in dollars was placed with the BCRA maturing in 2031 for USD203 million.

In January, interest for the equivalent of USD1.13 billion were paid. Payments for bonds in dollars and euros issued in the restructuring of foreign currency debt in 2020, for the equivalent of USD692 million, stand out.

Debt maturities for February are estimated to total the equivalent of USD3.787 billion. Excluding holdings within the public sector, maturities are reduced to USD3.121 million. The payment to the Paris Club for the equivalent of USD188 million should be highlighted.

ANALYSIS OF NATIONAL GOVERNMENT BUDGET EXECUTION – JANUARY 2022

by Nicolas Perez | Feb 10, 2022 | Budget Execution

During January, total revenues of the National Government fell by 6.7% in real terms compared to the same month of 2021, while expenditures increased by 28.6% year-on-year (YoY). Compared to the previous year, a negative balance of ARS51.295 billion was recorded. The primary surplus was ARS31.044 billion, a decrease in real terms of 85.1% YoY, compared to a year ago. Finally, the financial deficit was ARS86.045 billion, which contrasts with the positive balance recorded in January 2021.

Among the most dynamic items of expenditure were subsidies, which grew by 95.7% YoY: those for transportation increased by 109.5% YoY and energy subsidies by 93.8% YoY.
Real direct investment also increased by 94.6% YoY and social programs by 60.5% YoY.
Debt interest payments recorded an increase of 157.7% YoY, basically because of payments on securities issued in the restructuring process.
The 10.3% YoY decline in tax resources could not be offset by the 10.9% YoY increase in Social Security revenues.