Tuesday, September 26, 2023

There were cuts in subsidies and social spending and the budget deficit fell in August

The budget deficit continued to decline in August. This is despite the decline in income due to greater cuts in social benefits and spending, energy (cutting in subsidies due to tariff increases) and transfers to the provinces in the first 8 months of this year accelerated the decline in the primary deficit (does not include payment of interest on the debt): It was 26% lower in real terms (excluding inflation) than in the same period last year. In July the decline was 22.6%.

Due to the increase in interest payments (+ 16.7%), the financial or overall deficit was 11.2% lower in real terms than in the first 8 months of 2022.

Primary costs (excluding interest) totaled $18,170,599 million, a real decrease of 6.8%. Total expenses (with interest) amounted to $20,279,448 million and decreased to a lesser extent (-4.8% a/), as a result of the actual increase in interest payments on the debt (+16.7%).

These figures, produced by the Congressional Budget Office (OPC), show that in terms of cumulative numbers as of August 2022, “the most relevant real spending declines were recorded in. ”Family allowances (-26.0%), in Energy subsidies (-19.5%), in transfers to provinces (-19.2%) and in social programs (-17.6%)”

The report adds that “in the case of the retirement and pension item, although the real decline was smaller (3.2% year-on-year), this item was the fourth item with the largest contribution to the reduction in total expenditure, as it was at the post “Structure of primary expenditure (39.2%)”.

In the “Other social expenditure” item, the cuts in the Empower Work, Food Card and accompanying program (women and LGBTI+ in situations of gender-based violence) stand out.

On the other hand, interest on debts (+16.7%), transport subsidies (+13.9%), transfers to universities (+11.1%). and personnel expenses (+7.9%) They presented increases compared to execution a year ago.

The report said interest payments to the IMF totaled $514,921 million during the year.

National administration revenues amounted to $15,642,743 million as of August 31, a real decrease of 2.7% compared to the same period last year.

This deviation decreases to -0.2% year-on-year if one takes into account the $400,000 million that the Central Bank of the Argentine Republic (BCRA) transferred to the Ministry of Finance as profit distribution in the months of July and August (they appear in the Tabel). Income category), the OPC report clarifies:

On the side of Tax revenue fell 7.8% year-over-year with a different dynamics of the main taxes.

On the one hand, VAT collection increased in real terms by 10.2% and check tax collection by 1.7%.

In the opposite sense, export and import duties and income tax They suffered real declines of 54.6%, 10.5% and 9.0%, respectively.

The decrease in tax revenues was partially offset by the increase in social security resources, which recorded a real increase of 2.9%.

Nation World News Desk
Nation World News Deskhttps://nationworldnews.com/
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