While the Chamber of Deputies was debating the 2023 Budget Bill, which it was designed for fall within the fiscal adjustment target required by the International Monetary Fund, The Ministry of Economy published the report for the second half of this year on its website a few days ago “Execution of the financial statements of public non-financial companies”.
The numbers come as no surprise: they reflect the growing operating deficit of major state-owned companies. The “red” has officially reached the 394,071 million pesoswhich, translated into the official average exchange rate for the first half of the year, presents an operating deficit of 3,456 million dollars89% more than the $ 1,839 million operating red observed in the first half of 2021. They aim to close the year around 6,000 million dollars of operational red.
The rising operating deficit is a combination of higher pesos (subsidies) spending and exchange rate delays.
The deficit of the first six months of 2022 tells us that public companies are losing nearly 20 million dollars a day.
The operating deficit is the most realistic approximation of the situation of firms: it reflects the difference between the real income generated by the firm and the expenses it needs to carry out its operations. In most cases, what they collect – operating income – is far from covering the needs. The difference in silver is set by the Treasurythrough direct transfers.
the policy of discounted rates which – with greater or lesser intensity – has been maintained for 20 years explains a substantial part of the red of public companies.
So far this year, just over half of the tax hole caused by public companies is explained by IEASA (it lost $ 1,919 million, at a rate of $ 10.6 million per day). The company’s mission is importing energy at the market price and reselling it at a lower price than the local market. The spike in prices caused by the Russian invasion of Ukraine forced higher import spending, which was not passed on to domestic prices.
Something similar happens with the system passenger trains. The country’s largest employer (with more than 30,000 jobs exceeds all private companies) observed losses due to $ 621 millionNeighbor $ 3.45 million per day).
The same happens with AySA, the company that provides running water and sanitation services to the metropolitan area. He loses $ 1.35 million a day.
The Argentina postwith 18,091 employees – double, for example, of Mercado Libre-, recorded daily losses of $ 640,000.
There are two companies that escape the justification of operating with subsidized rates – and therefore unable to cover operating costs – as an explanation for their deficit.
Airlines, losses at cruising speeds
Aerolineas Argentinas loses $ 1.45 million a day but their tickets are sold at prices similar to those offered by private competitors. The cost to the Treasury, eI mean for all Argentines, regardless of whether or not they use the state airlinetravels at cruising speed between 500 and 600 million dollars annually for quite some time. The defenders of the airlines – therefore enemies of everything that sounds like privatization – emphasize the social role of the company, providing connectivity through the use of routes that would not be of interest to private companies. Those who would support rationalization policies argue that a specific subsidy policy could be applied to deficit destinations and pave the way for the company requiring less subsidies.
Another company that loses a lot of money is Argentina Radio and Television (2,400 employees): USD 320,000 per day. Days ago his economic plan for 2022 was known: he admitted that he will lose 14,000 million pesos.
In the 2022 business plan, the company states that “it does not aim at achieving economic viability but rather to progress in obtaining social benefits, such as the dissemination of public information, cooperation with educational and health institutions, the dissemination of cultural and entertainment content, with particular attention to the federal aspect ”.
A questionable topic to say the least, given the very low ratings recorded by radio and public television. And the easy access of citizens to all kinds of information, for example from the mobile phone, a device present in users of all economic levels.
The excellence of trains
The social role of trains is highlighted in the 2022 Plan. “The objective of the State Railways Manager will be aimed significantly increase social profitability generated by the provision of this essential public service. In this sense, through the best use of public resources, intended to support the Operator’s operational functioning, a set of essential actions will be developed to provide an excellent passenger transport service “. Anyone could check the statement excellence with, for example, the duration of a long-distance trip, which is usually double that of a land trip.
Another interesting case is that of argentine post, with which he decided to compete Free market. They explain it thus: “With the launch of“ Correo Compras ”at the end of 2020, a new entrepreneurial challenge arises. An increase in market share is expected in 2022, with the aim of positioning it as one of the preferred marketplaces by consumers and SMEs / entrepreneurs nationwide “.
They add: “2022 looks like a year of great transformations necessary to provide a better service to an increasingly demanding public”. “The mission is to be a dynamic, efficient, innovative company, with a national identity and respectful of people, the community and the environment “.
days ago, the Congressional Budget Office published a report on the situation of public companies. On the one hand, he pointed out that balance sheets end up being clouded by inflation. He also warned about the not always adequate transparency of the information released by companies, and argues 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 importance economy and budget deserves more attention and understanding ”
Source: Clarin
