The government apublic spending on energy, transport and public companies will increase by 53%, in the following year, as required by the Budget Law. As inflation forecast for 2023 is 60%, it is estimated that there will be a “real” decline of 10%.
The budget establishes that this will be the current and capital expenditure of public companies $ 3.83 billion, compared to $ 2.51 million allocated for the same purpose in 2022.
The detail of the expenditure shows that the majority (almost 70%) is in favor running expenses, while the smallest part (30%) is for capital investments.
The forms show that the Government will apply increases on electricity, gas, water and group travel bills. Instead, it looks like it will leave train travel with less travel.
The main items of expenditure are energy. So far, in 2022, the Executive Branch has allocated $ 373.78 billion in subsidies for the current expenses of companies in the sector. In 2023 they will increase by 23%, reaching 492 billion dollars. The increase is 32%, which is lower than expected inflation.
Cammesa devoured $ 1.5 billion this year and will demand $ 2.28 billion next year. The increase is 24%. From this data it is clear that the Government plans to save with segmentation. In this mechanism, families with higher incomes or those who do not sign up for subsidies will pay more in their bills, and this would result in fewer transfers to Cammesa. The specialists do not rule out that there is also some increase in tariffs.
The consequences of the high international gas prices, which Argentina imports in the winter, continue to be felt. In 2022, Enarsa requested a $ 307 billion injection to purchase gas-powered ships and import them from Bolivia. By 2023, that business will consume $ 570 billion. This is an increase of 85%, which exceeds the forecast inflation.
Although the pipeline connecting Vaca Muerta with Buenos Aires is ready by mid-2023, the savings from that work would not be enough to compensate for the LNG purchases. Liquid gas is now at record prices ahead of the European winter. It is unknown what will happen in April, when Argentina starts buying.
The protagonist of the capital expenditure will be Integración Energética Argentina (the former Enarsa). It will receive $ 355 billion, nearly half of all investments in energy infrastructure, transportation and other public companies. It is the company in charge of supervising the construction of the pipeline.
In transport transfers there will be an adjustment for groups, but not for trains.
Source: Clarin
