The new year begins Changes in public spending. Without the extraordinary income he received throughout 2021 – among them, collected by them Wealth tax-, Government Alberto Fernandez Forced to have strong cuts in various budget items, Even as important as social costs.
The total amount of adjustment is approx $ 225 billion According to the latest report of Congress Budget Office (CBO). This report analyzes Executive decision4 The Executive Branch issued the order last week, through which it distributed the relevant resources and credits. 2021 budget extension, After Congress rejected the budget proposal sent by the executive for this year last December.
In that executive decision, the Ministry of Economy agreed in 2022 Total revenue will fall to $ 627 billion. The first is that he no longer has the extraordinary income he received last year. Special Drawing Rights (SDR) Argentina received $ 422,174 million in stake in the International Monetary Fund (IMF). The alleged amount was removed from the current transactions and financial applications of international companies.
In addition, the ministry headed by Martin Guzman removed other income from the income category. The so-called “extraordinary and solidarity contribution” was $ 204,640 million -Known as the Wealth Tax – An emergency tax that simultaneously promoted Christianity in Congress due to an epidemic. Taxpayers with assets of more than $ 200 million are said to have contributed.
According to the latest data from the Ministry of Economy, the tax collection was $ 247,503 million in the last month of last year. As this extraordinary contribution has already expired, the products grown by this line have been drastically reduced: For example, the Secretary of Energy will lose $ 60,190 million, while the Ministries of Health, Education and Labor, Employment and Social Security will lose $ 48,150 million, respectively.
However, the cuts will cover other areas as well. The Ministry of Community Development, a key part of managing millionaire products to attend social emergencies, will have a $ 4,847 million cut.. In the meantime, the “treasury liabilities” will be reduced to just $ 3,000 million as they are transferred to provinces and public sector entities.
In Executive Decision 4, the government also removed from the allotted quota. Ministry of the Interior Expenditure related to the primary and general elections held last year. This amounts to a total of $ 19,532 million.
The only portfolio excluding adjustment, by contrast, received an increase in its item from the Ministry of Environment and Sustainable Development, Led by Juan Cabandié: This year he will receive an additional $ 4,847 million, bringing the game total to $ 16,771 million.
Thus, with this year’s budget restructuring, revenue estimates begin at a total of $ 7.9 trillion ($ 627,025 million compared to December 31, 2021), while the primary costs – that is, excluding interest payments on debt – totaled $ 10 billion (- $ 224,889 million). Therefore, The primary funding red deepens in 2022, raising $ 2 trillion (+ $ 402,136 million compared to the end of fiscal 2021).
These numbers do not indicate that this cost-cutting policy will be maintained throughout the current year. On the contrary, the opposition believes, as it has done in the last two years. The government rearranges various items by demand and emergency orders Revenue increases due to inflation.
For example, throughout the past year, especially in the last quarter, the government has provided free control over spending as a result of the election campaign and Budget items increased by 2.6 trillion pesos -31% compared to initial receipts. The bulk of this increase is explained by the strong expansion of capital expenditure (mainly public works) and economic subsidies (especially energy), which, up to last November, increased by 21% and 29%, respectively, in real terms.
Despite this strong increase in spending, Minister Guzman was able to improve the primary fiscal deficit, which was 3% of GDP last year. Thanks to the extraordinary income received by the Treasury (SDRs and wealth tax from the IMF), it will not be counted this year. Even The treasury may charge less by favoring the field; Although last year’s record was significant in the increase in this material collection due to the soybean harvest, The Drought This year the government can play a trick: step The Rosario Stock Exchange has stopped the nation state from levying export taxes of $ 1,038 million due to the fall in agricultural production..
As well as increased suspensions due to recorded soybean harvest. However, collections for favorites