Nicolas Perez - Oficina de Presupuesto del Congreso

PUBLIC DEBT OPERATIONS – SEPTEMBER 2021

by Nicolas Perez | Oct 14, 2021 | Public Debt Operations

Three market auctions were held in September, resulting in the placement of government securities for a total of ARS325.167 billion and an average maturity of 233 days.

During the month, amortizations were paid on market government securities for ARS260.611 billion. In addition, to reduce the burden of BONTE TS21, a swap was offered to Banco Nación (Bank of the Argentine Nation) and as a result, 97% of the bond stock was swapped.
To pay the first amortization of the IMF Stand-By loan, the Treasury placed a bill with the Central Bank for USD1.888 billion. Simultaneously, Temporary Advances were cancelled with resources from the IMF’s extraordinary allocation of Special Drawing Rights (SDR).
It is estimated that maturities for October total the equivalent of USD4.975 billion. Excluding holdings within the public sector, maturities are reduced to USD3.658 billion.
The Ministry of Economy announced the creation of a new type of short-term debt instrument, the National Treasury Liquidity Bills (LELITES), exclusively for Mutual Funds (FCI).

ANALYSIS OF NATIONAL TAX REVENUE – SEPTEMBER 2021

by Nicolas Perez | Oct 7, 2021 | Tax Revenue

Tax revenues totaled ARS976.314 billion in September, an increase of 61% year-on-year (YoY). Adjusted for inflation, it expanded 6.5% YoY.

Among tax resources, the increase in VAT, Tax on Credits and Debits and Income Tax stands out. Export Duties and Social Security resources continued to show a good performance.

The low comparison base attributable to the economic effects of the Mandatory Preventive Social Isolation (ASPO) which came into force on March 20, 2020, the increase in international commodity prices and the increase in the nominal exchange rate (30.7% YoY) contributed favorably to these results, although a deceleration in the margin was observed.

INTERNATIONAL CONFERENCE ON PUBLIC FINANCE

by Nicolas Perez | Sep 29, 2021 | Activities

OPC participated in the 54th International Conference on Public Finance organized by the School of Economic Sciences of the National University of Cordoba. This meeting is considered one of the most prestigious in the field of Public Finance, not only locally but also regionally.

The panel “Public Policies and Gender” included a presentation by the Director of Studies, Analysis and Evaluation of the OPC, María Eugenia David Du Mutel de Pierrepont and Inés Berniell, researcher at the Center for Distributive, Labor and Social Studies of the National University of La Plata.

The Director explained the benefits of including gender perspective in public policies and highlighted the importance of opening spaces for exchange with the academic community on the work and research being carried out within the legislative sphere on public finances.

The Conference was held virtually from September 21 to 24 and with the participation of different experts from Argentina and Latin America.

IMPACT OF MOTHERHOOD ON WOMEN’S SALARIES AND PERMANENCE IN THE LABOR MARKET – IMPLICATIONS FOR THE ARGENTINE SOCIAL SECURITY SYSTEM

by Nicolas Perez | Sep 28, 2021 | Policies on specific population groups

The role of women as household caregivers and, closely linked to this, motherhood, explain the unfavorable position in which women find themselves in the labor market and in access to social security benefits, which contributes to the origin and persistence of gender gaps.

Motherhood penalty in the Argentine labor market:

The probability that a mother will enter the paid labor force is 11.5 percentage points lower than that of a woman without children, an effect that is more pronounced in the case of having children under 10 years of age.
A woman with children earns 12% less than a woman who is not a mother, and this penalty is greater in the presence of adolescent children.
These disadvantages are worsened by the number of children: a woman with three or more children is 15 percentage points less likely to work than a woman who is not a mother and has a relative wage 18% lower.
The highest motherhood penalty is found among the youngest women, those with intermediate qualifications (with complete secondary education), and those in the informal labor market.
This phenomenon worsens the gap and poverty of households and reinforces their reproduction. Thirty-one percent of Argentinean households are headed by a woman.
Single mothers with children under the age of 18 earn the lowest hourly wages.
Women up to the age of 29 earn as much as 42% less if they have three or more children.
Only 25% of mothers manage to reach the number of years of contributions required by the regulations, compared to 41% when considering women who do not have children.
Within this select group, 9 out of 10 mothers and slightly more than 8 out of 10 women without children have completed university studies.

If structural issues that prevent reaching the required years of contributions are not addressed and the focus is placed only on access to pension benefits, the economic and financial consistency of the pension system could worsen. The formalization of labor would add resources to the public coffers, facilitating the self-financing of the pension system.

IMPACT OF MOTHERHOOD ON WOMEN'S WAGES AND PERMANENCE IN THE LABOR MARKET - IMPLICATIONS FOR THE ARGENTINE SOCIAL SECURITY SYSTEM

ANALYSIS OF NATIONAL GOVERNMENT BUDGET EXECUTION – AUGUST 2021

by Nicolas Perez | Sep 14, 2021 | Budget Execution

Driven by the strong increase in Export Duties, VAT, and Income Tax, in that order, National Government revenues increased by 12.3% in August in real terms year-on-year (YoY).

Mainly because of the increase in capital expenditures and energy subsidies, primary expenditures once again grew above inflation for the second time this year, breaking the opposite trend they had shown in the last five months: 5.0% YoY.

The dynamics between revenues and expenditures resulted in an improvement in real terms of the primary, fiscal, and revenue deficits: he year-on-year comparison showed a decrease of 39.3%, 21.7% and 13.3%, respectively.

Social Security contributions grew 4.2% year-on-year. The number of contributors to the system increased but taxable income grew below inflation.
Since May, ARS179.285 billion have been collected through the Solidarity and Extraordinary Contribution and ARS65.938 billion have been spent.
Subsidies to the Compañía Administradora del Mercado Mayorista Eléctrico (CAMMESA) amounted to ARS102.935 billion with an increase of 126.6% YoY because of the gap between the cost of generation and tariffs and the delay in payment by the electricity distributors.
At the end of August, approximately ARS256.75 billion were executed, equivalent to 61.5% of the current appropriation (ARS417.187 billion) to meet the expenses related to the fight against COVID-19.
The initial budget for the year was increased by ARS1.015 trillion, with priority being given to social programs, energy subsidies and the procurement and distribution of vaccines.

PUBLIC DEBT OPERATIONS – AUGUST 2021

by Nicolas Perez | Sep 13, 2021 | Public Debt Operations

In August, three market auctions were held resulting in the placement of government securities for a total of ARS314.79 billion and an average maturity of 230 days.
In the last auction of the month, the second round of the Market Makers Program was called, in which the Applicants subscribed LEDES maturing in November and December for ARS2.277 billion.
In September, maturities are estimated for the equivalent of USD8.335 billion. Excluding holdings within the public sector, the amount is reduced to USD4.854 billion.
The first amortization payment on the IMF Stand-By loan for approximately USD1.89 billion is scheduled for September 22.