Nicolas Perez - Oficina de Presupuesto del Congreso

ANALYSIS OF NATIONAL TAX REVENUE – AUGUST 2021

by Nicolas Perez | Sep 6, 2021 | Tax Revenue

Tax revenue totaled ARS1.005 trillion in August, an increase of 64.2% year-on-year (YoY). Adjusted for inflation, the increase was 8.1% YoY.

Among the tax resources, the increase in VAT, Tax on Credits and Debits and Profits stand 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) that came into force on March 20, 2020, the increase in international prices of raw materials and the increase in the nominal exchange rate (32.6% YoY) contributed favorably to these results, although a deceleration is observed.

SUBNATIONAL MEETINGS #HABLEMOSDEPRESUPUESTO (LET’S TALK BUDGET) CONCLUDED

by Nicolas Perez | Aug 13, 2021 | Activities

With more than 150 participants, the subnational meetings #HablemosDelPresupuesto (Let’s talk Budget) organized by Directorio Legislativo, Andhes, Fundeps, Nuestra Mendoza and Salta Transparente, with the support of the OPC, concluded. These exchanges are part of the goals set in the Action Plan co-created between the OPC and civil society.

Together with representatives of provincial legislatures and civil society organizations, four meetings were held in Salta, Mendoza, Tucumán, and Córdoba to share experiences on Public Budgets in different parts of the country and promote budgetary technical assistance for legislators and the community.

Natalia Laria (Coordinator of Parliamentary and Institutional Relations) presented the work of the OPC and Maria Eugenia David Du Mutel de Pierrepont (Director of Studies, Analysis and Evaluation) spoke on Gender-Responsive Budgets and presented the OPC’s Gender-Responsive Budget Monitor.

Local organizations Fundeps (Córdoba), Nuestra Mendoza, Andhes (Tucumán) and Salta Transparente presented “ABC del Presupuesto Público”, a joint document that addresses the budget cycles in each of the four provinces.

The #HablemosDelPresupuesto meetings were moderated by Michelle Volpin (Directorio Legislativo), with presentations by María Eugenia Du Mutel de Pierrepont (Director of Studies, Analysis and Evaluation of the OPC), Natalia Laria (Coordinator of Parliamentary and Institutional Relations of the OPC), Manuel Calvo (Vice-governor of Córdoba), Sofía Devalle (Director of the Technical Budget Office of the Legislature of Córdoba), Pablo Rafael Gómez and Pablo Narváez (Secretaries of the Senate of Mendoza), José María Las Heras (Director of the ASAP – Córdoba), Gustavo Ramiro López (Andhes), Juan Francisco Minetto (Nuestra Mendoza), Nina Sibilla (Fundeps), Gonzalo Guzmán (Salta Transparente) and Silvia Jardel (General Manager of the Mendoza Business Council)

ANALYSIS OF NATIONAL GOVERNMENT BUDGET EXECUTION – JULY 2021

by Nicolas Perez | Aug 13, 2021 | Budget Execution

Because of lower healthcare expenses, the drop in pension benefits, the decrease in debt interest payments and an expansion of revenues of 7.1% year-on-year (YoY) during July, the National Government recorded a primary, fiscal, and revenue deficits decrease in real terms as compared to the same month of the previous year.

The primary deficit amounted to ARS131.32 billion, which implies a reduction of 32.1% YoY compared to July 2020.

Revenues totaled ARS640.2 billion. The currency depreciation and the prices of the soybean complex stimulated the collection of Export Duties.
Primary expenditures amounted to ARS771.52 billion in July and fell 2.5% YoY, mainly due to the drop in pensions and current transfers to provinces, but also because expenditures in social programs for the health emergency were lower than those made in July last year.
Pensions fell 5.5% year-on-year. The mobility of the general pension system’s benefits in the last four increases did not manage to compensate for inflation: 36.8% vs. 51.8%.
On the other hand, energy subsidies increased by 59.2%, largely to compensate for the increase in the wholesale price of electricity.
The Food Policies and Potenciar Trabajo programs accounted for 58.7% of the funds allocated to social programs.
The initial Budget for the year increased by ARS293.64 billion as of July 31, with priority being given to social programs, the procurement and distribution of COVID-19 vaccines (ARS76.43 billion for the purchase and transport), and transfers to IEASA (Integración Energética Argentina S.A.).

PUBLIC DEBT OPERATIONS – JULY 2021

by Nicolas Perez | Aug 12, 2021 | Public Debt Operations

In July, marketable government securities for the equivalent of USD4.96 billion were cancelled, including the voluntary swap of BONCER TX21 – maturing in August – for ARS215.17 billion (approximately USD2.23 billion).
The last two swap re-openings for the remaining creditors of the restructuring of foreign currency securities issued under Argentine legislation in September 2020 were carried out. In total, securities were swapped for USD41.57 billion, 99.66% of the original eligible amount.
At the end of July, the first partial payment agreed in June with the member countries of the Paris Club was made for approximately USD227 million.
Maturities for August are estimated to total the equivalent of USD4.7 billion.
Excluding holdings within the public sector, maturities are reduced to USD3.14 billion.
On August 2, the IMF approved a new general allocation of Special Drawing Rights (SDRs) for the equivalent of USD650 billion, which will become effective on August 23. Given Argentina’s quota in the IMF (0.67%), the country will receive the equivalent of USD4.35 billion.

ANALYSIS OF THE NATIONAL GOVERNMENT FINANCIAL REPORT 2020

by Nicolas Perez | Aug 11, 2021 | Financial Report

When comparing execution with the initial Budget, total revenues and total expenditures showed deviations of 50.7% and 44.1%, respectively.

Given the lack of parliamentary approval of the Budget Law for fiscal year 2020, the extension of the Budget Law for fiscal year 2019 (Law 27,467) applied under the terms of Section 27 of Law 24,156.

Property income was the main source of the increase in current revenues, with a real positive variation of 198.1% YoY, due to the transfer of profits from the Central Bank of the Argentine Republic (BCRA) for ARS1.6 trillion. Without this transfer, total revenues would have fallen 16.6% YoY.

Primary expenditures increased by 17.1% during 2020. This variation is mainly explained by the package of measures related to COVID 19, which implied an accrued expenditure of ARS921.6 billion, without which primary expenditures would have shown a slight expansion of 0.2% YoY.

If the BCRA’s profits are excluded, the primary deficit stood at ARS2.0 trillion (7.3% of GDP) with a decline of 6.6 percentage points (p.p.) with respect to the 2019 deficit (0.7% of GDP). Meanwhile, the financial result implied an imbalance of ARS2.6 trillion (9.6% of GDP), reflecting a decline of 4.6 percentage points (p.p.) with respect to the previous year.

Public Debt and Increase in Other Liabilities totaled ARS3.43 trillion, which resulted in an amount 30.1% (ARS1.47 trillion) below the initial Budget, while Debt Amortization and Decrease in Other Liabilities amounted to ARS1.82 trillion, 46.6% (ARS1.59 trillion) below the initial Budget.

The stock of national public debt in pesos showed an increase of ARS8.9 billion during the year, largely explained by a 40.5% increase in the exchange rate. Among the debt operations, the restructuring of debt in foreign currency, both under local and foreign legislation, stood out. As a result of both operations, net debt fell by USD2.43 billion.

ANALYSIS OF THE NATIONAL GOVERNMENT FINANCIAL REPORT 2020

ANALYSIS OF NATIONAL TAX REVENUE – JULY 2021

by Nicolas Perez | Aug 6, 2021 | Tax Revenue

Tax revenues totaled ARS933.2 billion in July, which implied an increase of 66.9% year-on-year (YoY). Adjusted for inflation, it expanded 9.9% YoY.

Last month, Value Added Tax (VAT), the main tax source, grew 23.1% in real terms. The Tax on Credits and Debits and Income Tax also rose significantly.

Wealth Tax decreased (43.5%) because of the deferral of the due date for the month of August.

Export Duties (100.8%) 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) that came into effect on March 20, 2020, the increase in international commodity prices and the increase in the nominal exchange rate (34.6% YoY) contributed favorably to these results.