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Quarantine and recession: the fiscal deficit soared and reached $ 251,287 million in May

2020-06-23T21:48:11.038Z

This is compared to a surplus of $ 25,974 million in the same month of 2019. Public spending doubled and revenues grew only 2.4%



06/22/2020 - 17:44

  • Clarín.com
  • Economy
  • Economy

With public spending that doubled to mitigate the impacts of the coronavirus and revenues that grew by only 2.4%, a primary fiscal deficit (before debt interest payment) of $ 251,287 million was recorded in May . This red is contrasted with the primary surplus of May 2019, when it was $ 25,974 million.

Tax result sheet for May 2020.

When the interest payment of the debt, which was for $ 56,932 million, is recorded, the May financial deficit reached $ 308,219 million, the Ministry of Economy reported this afternoon.

During the last months, the Government has deployed a series of measures to try to alleviate the effects of the expansion of the pandemic in the country, which reach 2.6% of the GDP, as detailed by President Alberto Fernández himself weeks ago. And while that happened, the effect of the stop on the activity impacted on tax revenues, with a meager collection.

Specifically, primary spending amounted to $ 579,507 million, a year-on-year rise of 96.8%. "This dynamic responds to the measures implemented by the National Executive Power to sustain the income of families, sustain employment and production and compensate for the drop in revenue from the provincial administrations," Economy explained.

For its part, revenues totaled $ 328,120 million, with a year-on-year increase of only 2.4%. "This behavior of resources is explained by the contracting effects of ASPO on the volumes of production, consumption, investment and foreign trade," it was officially detailed.

While tax revenues decreased by 3.3% compared to May 2019 (drop of 36.2% of export duties, 7.9% of VAT collection - net of refunds - and 5.1% of the tax on debits and credits), non-taxes plummeted also: there was a drop of 53.7% registered in property rents due to the suspension of ANSES rents collected from the private sector via ANSES credits.

Regarding capital resources, the jump of $ 8,263 million compared to May 2019, corresponds mainly to transfers to ANSES for the financing of the Historical Reparations program (article 121 of the 2019 Budget Law No. 27,467) .


Note in development

Source: clarin

All business articles on 2020-06-23

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