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In April, government spending on pensions and social programs continued to fall

2021-05-14T15:59:43.474Z

Says the Congressional Budget Office. All the variables rose less than inflation and there was less aid.



Ismael Bermudez

05/14/2021 9:17 AM

  • Clarín.com

  • Economy

Updated 05/14/2021 9:17 AM

“Continuing with the trend observed in recent months, personnel expenses contracted by 12.9% and in retirements and pensions they fell by 13.4% compared to the same month of 2020, basically due to the

update of assets and public wages below

inflation "

.

The

National Budget Office

(OPC) says it based on the

Budget Execution of the National Administration.

Thus he explains that “transfers in retirement and pensions, which reached $ 241,173 million, presented

a real fall of 13.4% year-on-year

, mainly explained by the

gap

between the update of adjusted assets according to the

new mobility formula and the rate of inflation

(29.4% versus 46.4% year-on-year) ”.

The Report adds that the $ 1,500 supplement granted to counteract the decrease in purchasing power of the lowest-income retirees was

below the extraordinary bonus granted in April 2020

, which was $ 3,000.

"The contractionary effect of the

decrease in the number of beneficiaries

should also be highlighted

, which, according to ANSES, was 1.5% year-on-year in March. For their part, non-contributory pensions ($ 22,686 million) fell 8, 4% year-on-year and family allowances ($ 37,043 million) 9.7% year-on-year ”.

In May, the pension decline could moderate because also this month the bonus or bonus of $ 1,500 is being paid to the lowest assets (in the same month of 2020 there was no bonus), but that higher nominal expense would be partially

offset by the increase in

annual

inflation

, which could be around 49%.

This year, in the first quarter, pensions and other benefits increased 8.07% in March versus an inflation of 13%:

almost 5 points less

. In April, the lowest retirements and pensions had a plus of $ 1,500, raising for this sector the increase in those who charge the minimum retirement to 16% compared to a rise in prices of 17.6%.

In relation to

social programs

, the Report says that although there is a constant growth in spending associated with the measures implemented during the current year (50% increase in the Alimentar Card in February, $ 15,000 to AUH AMBA, REPRO II to affected sectors), the level of execution

in April 2021 totaled $ 53,503 million

, resulting

61.7% lower in real terms

than that registered in the same month of 2020 ($ 95,591 million), mainly

due to the elimination

of the Emergency Family Income (

IFE

) ”.

Consequently, "the distinctive fact of budget execution was given by the

year-on-year decrease in social assistance aimed at alleviating the effects of the pandemic

." 

On the other hand, the

salaries of the National Administration

accrued $ 58,031 million, with

a fall of 12.9% year-on-year

, mainly due to the fact that the update of salaries was below inflation.

Meanwhile, "transfers to universities, largely associated with the evolution of wages, show a real fall of 8.6% year-on-year".

NE

Look also

Minimum retirement: the effective increase will be just $ 1,000

Retirements and social benefits increase 12.12% as of June

Source: clarin

All business articles on 2021-05-14

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