Saturday, October 1, 2022

The government set a cap on funds for each ministry and introduced a tighter control on spending

Sergio Massa and his Habitat counterpart Jorge Ferraresi met on Monday to discuss spending limits for the rest of the year in the public sector.
Sergio Massa and his Habitat counterpart Jorge Ferraresi met on Monday to discuss spending limits for the rest of the year in the public sector.

The economy ministry begins to reduce the line for the rest of the state’s distributions that the budget for the rest of the year will not be overburdened, For this, the Palacio de Hacienda established in recent times What will be the final “quota” of budget items Due to which the rest of the ministries will have to keep a tight control on the pace of public spending.

economy minister Sergio Massa Put The Treasury Secretary has to be at the forefront of this task. Raul Rigo and the head of the advisory cabinet Leonardo Madkur. The two had this Tuesday, and will continue to do so throughout the week, mainly on Thursday, with meetings with representatives of public sector agencies to establish a roadmap for the rest of 2022.

In practice, that roadmap An established limit on budget funds would include Which will happen in each region for the coming months. Ministry in June, then headed Martin GuzmanThe U.S. had a “re-evaluation” in the distribution of budget credits for each ministry, due to the fact that the government worked with a high inflation estimate. Then, there will be funds they can rely on. a detail: That the budget decree was made with inflation calculated at 62% per annum, while the figure is now expected to exceed 90 percent.

Massa put Treasury Secretary Ral Rigo and chief of staff of advisors Leonardo Madkur at the forefront of the ministry’s task of setting spending limits.

Now the government lowered the line for each dependency that there would be no more money than was established by that decree and that The new “fees” will bewhich is related to the rate at which that money effectively reaches every nook and corner of public administration.

The Palacio de Hacienda explores with this method, which he foresaw in his brief stint in ministry. sylvina batakiso, that the state can use only what has previously entered the treasury. There is an asterisk that the new economy driver must solve: amount of temporary debti.e. phased payments, which were accumulated during the first half of the year, and which over $800,000 million,

Part of the discussion about the extent that the state would have to fund the ministries happened this Monday with a meeting that Massa held with his counterpart from Habitat. George Ferraresi, In the same way, they also passed through the office of Minister Rigo and the head of Ances, fernanda reventaTo evaluate the financial prospects of bonuses for retirees, which will be announced this Wednesday.

Sergio Massa, in a meeting this week with Ral Rigo, head of Anse Fernanda Ravarta and Secretary of the Treasury
Sergio Massa, in a meeting this week with Ral Rigo, head of Anse Fernanda Ravarta and Secretary of the Treasury

Massa will need a strong financial signal to make the market and the body understand that it will aim to achieve that goal. For this he mentioned some decisions like implementation of Expenditure limits for the public sector, strict freezing of state workers’ plants and defying the monetary issue From the Central Bank to the Treasury.

As per official estimates, the executive branch will need, Correct the deviation of 0.7% of GDP in which the public sector is spending at its level of performance, In which fund the handbrake will be put in is one of the questions that have yet to be answered by the new economic driving force. There are some expenses that are more stringent and have less margin to contract, primarily social and retirement expenses that are indexed. Thus, others remain in more discretionary hands, such as public works or transfers to the provinces.

There is one issue that the new economic leadership will have to address: the mass of temporary debt, that is, phased payments, that accumulated during the first half of the year, and that exceeds $800,000 million.

Minister also ordered Accelerate the preparation of the 2023 budget project, to present or to show The next September 15, in 40 days, a job that would also fall on Rigo, who had actually prepared an advance payment just hours before Congress resigned. Martin Guzman.

The new budget will include the results of Massa’s discussions with the IMF in the coming weeks. As they say, no topic will be left out of the table that will be discussed beyond 2022 Treasury funding from reserves, inflation projections or the Central Bank,

The fiscal path that Massa ordered included two other phases: the first was Refund of $10,000 million temporary advance From the Treasury to the Central Bank. This is not a significant figure, but it implies a message the economy minister wants to convey to the market: that there will be no further requests for assistance from the monetary authority in the future.

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