In July there will be an extra $ 335,000 million on the street: three months before PASO, the Government is betting that they will help raise consumption

Annabella quiroga

06/19/2021 22:30

• Clarín.com

• Economy

Updated 06/19/2021 10:30 PM

The fiscal start of the second semester will be in electoral mode.

Alerted by the polls, the Government is looking for a "sweet July" in which the public and private sectors will pour at least

$ 335 billion

into their pockets

.

The Government hopes that this will kickstart the delayed upturn in consumption and improve the chances of the ruling party in the next elections.

The calculation is from the consulting firm

EconViews

, which coined the term

"sweet July"

for this combo: between Christmas bonuses, returns of earnings and bonuses to retirees and social programs, next month more than

335,000 million pesos will

be injected

into the street.

To reach that number, the $ 6,000 bonus is included, which will reach almost 1 million workers in the popular economy through the Empower Work plan.

This item consumes

$ 5,400 million.

To this is added the refund of Profits, with the first installment of the refund of the amount paid for this tax between January and June.

This will reach the pockets of 1.2 million employees who together will pocket

$ 6,923 million next month.

The next step refers to the bonus for retirees who collect the minimum credit, an initiative that has not yet been officially confirmed but that is taken for granted by official offices, which would be two installments of around $ 1,500.

This would demand

$ 33 billion

from the tax coffers

.

The last item is the juiciest.

It is the one that measures the impact of the average bonus among workers in a dependency relationship, both private and public sector. 

In total it will be $ 290,000 million.

For EconViews, the immediate question is

where will these weights go?

The intention of the Government is that they turn to consumption.

With tourism practically forbidden, one of the most likely options is that they go to the purchase of electrical appliances or other types of goods.

But the consultant warns that the

shock of the bonus is used in consumer, "expectations regarding the dynamics of real wages in the short

should improve

."

This outlook is complicated because salaries are traveling at a rate 

7 points below inflation

, although this loss could be limited since

the official salary guideline of 30% begins to extend to 45%, as shown by the agreements closed in recent days, such as those for truckers and ANSeS.

In this way, they foresee that "a

good part of the money that will go to the streets in July will go to consumption

while a smaller part will go to savings."

In this second part,

"

a higher dollarization

is not ruled out

,

although rates in pesos are relatively attractive in the face of a process of deceleration of inflation that we see ahead and with a Central Bank determined to put a ceiling on parallel prices."

The truth is that in the week that ended,

the market was preparing for what it sniffs as a higher dollarization.

Thus, the blue dollar increased four pesos and closed at $ 164, eight pesos above the price it had at the beginning of the month.

Fiscal accounts

With the aspiration that consumption grows, the Government will seek that part of the pesos that will go to the streets

return to the fiscal coffers

through taxes and that this alleviates the effect on public accounts.

After a first four-month period in which Minister Martín Guzmán strongly adjusted spending, the second wave of Covid demanded a

loosening of the reins.

The new restrictions on circulation led to an expansion of the Alimentar Card, which went from 1.9 million to 4 million families.

Added to this was a

$ 15,000 bonus

for beneficiaries of the Universal Child Allowance (AUH) and monotax A and B of the AMBA.

In addition, REPRO II was extended to cover companies hit by closures and infections.

Until now, the Government has taken the amount allocated to social coverage and care for the pandemic to 1.3% of GDP.

It's about

$ 480,000 million

.

Along with this increase in expenses, the Government has in favor of an increase in income.

On the one hand, it will have an 

additional

$ 300,000 million 

for the Wealth Tax.

And on the other hand, the rise in commodities, despite the declines in recent days, will contribute up to

US $ 8,000 million more

than estimated.

"We do not believe that the minister can sustain the brake that he maintains on expenses and

the expansionary fiscal policy of the electoral years

will reappear, consuming the margin offered by the extraordinary income," says the consulting firm LCG.

AQ

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