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Due to higher social spending and rate subsidies, the fiscal red returned in the first month of Alberto Fernández

2020-02-26T18:51:18.856Z


In January there was a deficit of $ 3,376 million. A year ago, the surplus had been $ 16,558 million


02/26/2020 - 14:49

  • Clarín.com
  • Economy

Public accounts resumed the fiscal red during January, as had happened in November. The first whole month of the administration of Alberto Fernandez hill with public deficit was $ 3,376 million. In January 2019, the primary fiscal result had been $ 16,558 million, which implies a deterioration of $ 20,423 million.

The Ministry of Economy explained this red as " social investment momentum during the beginning of the year. In January, $ 398,990 million was spent, with a 50.6% increase in its growth rate compared to December 2019." 80 % of this year-on-year increase is explained by social security benefits that advanced by 49.3% and current transfers that were made at a rate of 88.7%, "said Economy.

The interest payment on the debt brings the total fiscal deficit to $ 90,818 million. Due to debt, there were disbursements for $ 87,052 million, 13.5% more than the same period of 2019.

According to Economy, the reported fiscal deficit "is mainly due to the impulse of social investment: 8.74% granted for social benefits, the $ 5,000 bonus for 4.5 million retirees and pensioners and the implementation of the card program food ", detailed Economy. "These last two measures involved disbursements for around $ 25.350 million." The Executive Power says that, without these items, primary spending would have grown to 41%, in parallel with tax revenues.

Although public service and transportation rates are frozen, economic subsidies rose 76% year-on-year, to $ 30,987 million . Energy items grew 125% or transportation rose 34%, "It is partly due to the cancellation of unpaid debts corresponding to the fiscal year of 2019," they said on energy. The Government ordered a pesification and reduction of prices in electricity generation as a first step to reduce subsidies.

"Current transfers to the provinces registered a boost of $ 9,536 million compared to the same month of 2019." It is a rise of 80%, similar to that of universities, which received 70% year-on-year, reaching $ 13,485 million.





Source: clarin

All business articles on 2020-02-26

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