Ismael Bermudez
08/26/2020 - 9:55
- Clarín.com
- Economy
- Economy
The Chief of Cabinet distributed the 1.9 trillion pesos expansion of this year's Budget to the various ministries and agencies, voted on at the beginning of the month by the National Congress.
Through Administrative Decision No. 1553, the Chief of Cabinet distributed in 484 forms the expansion for a total of 1.9 billion pesos of the Budget voted by the National Congress.
This expansion was due to the fact that the 2020 National Public Administration Budget repeated that of last year - that of 2019 was extended with the argument of waiting for the debt restructuring - with an expected primary deficit, before interest payment, of $ 997,455 million and a financial red, with interest, of $ 1,784,716 million.
Due to inflation, the recession and the pandemic, the Government promoted and Congress voted to expand the current budget with an increase in spending by $ 1,875,383 million and greater resources by $ 642,845 million. This means an additional negative balance of $ 1,232,538 million.
Thus, for now, the forecast deficit would reach $ 3,017,254 million, which is equivalent to between 8 and 10% of GDP . Most of this hole is financed with transfers of (accounting) profits from the Central Bank, internal debt and international financial organizations.
Of the $ 1,875,383 million in higher expenses, those related to the pandemic increase by $ 869,504 million, fundamental by the IFE (Emergency Family Income) and the ATP for payments of part of the salary of private employers. Another $ 626,067 million correspond to social security programs. And $ 205,971 million are energy subsidies due to the freezing of utility rates, commitments to electricity generators and the rise in the value of the dollar.
On the income side, the greatest resources would come from the Personal Property Tax and the PAIS Tax (30% surcharge on the purchase of the US $ 200 per month per person.
Extension number 15
On the other hand, to meet the higher expenses of the National Program for Socio-Productive Inclusion and Local Development "Promote Work", the Government increased the National Budget by $ 5.8 billion , through Administrative Decision No. 1552 published this Wednesday in the Official Gazette, expanding the fiscal deficit.
So far this year it is about the 15th budget modification, which increased spending by a total of $ 873,273 million.
NE
