The financial situation of state-owned companies is not good and their contribution fiscal deficit is growing. The operating red of the 34 public companies amounted to 3,700 million dollars in 2021 and this year aims to exceed 4,000 million. This figure derives from the comparison between the income generated by companies and what they spend. The difference is made by the Treasury.
This reality of a sector it occupies 111,000 people was analyzed by Congressional Budget Office (CBO) than in a 62-page report published days ago warned about some sensitive pointslinked to the tax impact of the financial statements of these companies and also opposes the transparency and controls about these companies.
To prepare this work, the OPC, led by Marcos Makón, had the contribution of economists Nicolás Gadano and Emilio Nastri.
The report indicates that “public company spending totaled 2.5 trillion pesos in 2021, accounting for 19.3% of total national public sector spending, equivalent to 5,4 points the GDP. Of course, half of this spending corresponds to YPF, a company, the report points out, which has not received any contributions from the Treasury since its renationalization in 2012.
But the same report makes it clear that, excluding YPF, “83% of the total expenses of these companies correspond to ongoing expensesan indicator that in many companies is even higher “.
The work underlines that “it is a classic symptom of the investment difficulties of public companies, due to the pressure of current expenses (wages and more) on flows.
The document insists that “many of the national public companies, including some of the largest, receive recurring wire transfers from the Treasury to finance a substantial portion of their current and capital expenditures. These are not one-off transfers, but funds that, year after year, pay a large part of their expenses.. From a fiscal and budgetary point of view, its assistance to cover the imbalances of public companies has grown to reach worrying values, equal to 1.5% of GDP in 2021.
A typical case that fits into this concept is that of the Río Turbio Carboniferous Deposits: months ago the Ministry of Economy approved the “Action Plan and Budget for the 2022 financial year of the Río Turbio Carboniferous Deposits”. YCRT is estimated to have operating income of $ 47.45 million, while operating expenses will rise to $ 11,882 million. Operating income covers just 0.4% of expenses. The remaining 99.6% is provided by the National Treasury.
In any case, the work makes it clear that not all of the deficit of these companies is a consequence of operational inefficiencies. “In many cases, operational imbalancess are the result of low price policies decided by the authorities and imposed on companies. In this context, Treasury transfers to these companies are more the result of public policy decisions (subsidies for domestic energy consumption and public passenger transport) than assistance to companies derived from their poor performance.
In fact, most of the operating deficit of public companies explained by the grants: the largest contributions from the Treasury go into the hands of Enarsaresponsible for importing expensive energy which is then sold at a lower price on the domestic market; AYSA, post office and trains. Enter this list Argentine airlinesbut in this case its deficit does not correspond to rates lower than those of the market but to inefficiency in its management.
The report warns of what can involve tax risks: the plaintiff deviated between the budgeted amounts to be transferred to each company and the (higher) amounts actually received. “These deviations are related to the higher inflation observed compared to that estimated as a guideline for each budget.”
The report also puts the magnifying glass on another deficit, that of transparency. It indicates two specific cases: YPF, nationalized in 2021 and the former Pescarmona (under state control since 2021). “A singular characteristic is observed: in the same administrative acts that determine the majority control of the company, clauses are inserted that aim to ensure that the company is not affected by the general discipline of public companies”. The authors of the report point out that “although this idea may seem reasonable from a business management point of view, it does not contribute in terms of control and transparency that involve the management of public resources and goods “.
The report ends with a recommendation. He affirms that it is necessary “to consolidate an information system of state-owned enterprises that allows them to monitor and evaluate their performance on homogeneous and updated databases, because their economic and budgetary importance deserves greater attention and understanding”
Public companies, with their 111,000 employees, account for almost one third of the total employees of the National Public Administration, that this Friday, according to INDEC, totals 341,681 employees
Source: Clarin
