The government of Alberto Fernández, like that of Cristina Fernández de Kirchner before, often criticize to private companies that make money, or at least do more money than deemed reasonable by officials. The focus is also on profit margins of companies. Surprisingly, the ruling party says nothing about the public companies that lose hundreds of millions of dollars every year and they stay afloat – most of them – thanks to the multimillion dollar money transfers they receive from the Treasury.
At the beginning of his administration, President Alberto Fernández himself told businessmen that the time had come “earn less”. He later applied to property tax and then promoted a taxation project al “unexpected rent” which ultimately failed in Congress, but was replaced by an AFIP resolution requiring some companies to do so pay more advances due to the gain they would get in 2022.
These days they are getting to know each other business plans of public companies with budgets and projections – among other things late – for 2022. This week it was learned that the company AYSA estimated to lose about $ 80,000 million pesos, the news agency telam will lose approximately $ 3,000 million on Public radio and television 14 billion dollars … Argentine airlines It acknowledges that it will lose about $ 500 million this year, but its owner, Pablo Ceriani, has said that in 2023 the losses will, he hopes, drop to just $ 400 million.
Clarione For months it has signaled the growing fiscal deficit of public sector companies. Between September 2021 and the same month of 2022 they accumulated a operating deficit of nearly $ 5.6 billion. That red is expected to exceed $ 6,000 million by the end of this year, well above the $ 3,700 million in operating losses it accrued in 2021.
This newspaper also reported that, in the second half of this year, public companies are reporting an alarming rate of losses: at the rate of 20 million dollars a day.
The trains – this Tuesday stopped and complicated the lives of millions of people – employ more than 30,000 people and accumulate in the first half of the year $ 621 million in operating deficit.
Although most of the losses of public companies are due more to political issue with respect to efficiencythere is no real debate within the government about it what to do to reduce a hole that is equivalent to about 1.5% of GDP.
The political issue is due to the fact that the operating losses of the companies reside above all in the fact that rates apply well below of those would also need to achieve a balance between what they bill and what they spend. A simple example: the price of train tickets is far from covering the running cost. The same happens with IEASA – in six months it lost $ 1.9 billion – importing energy at market prices and delivering it to the local distribution network at a much lower price. Rate hikes are discussed between two factions of the ruling party: those who want to limit them to a minimum of expression and those who want to advance a little more.
The situation is different for Aerolineas Argentinas, which sells its tickets, national or international flights, at rates similar to those of the competition. In fact, the airline has insisted on putting a minimum price on tickets for all airlines. There, the operating deficit cannot be explained by the sale at a subsidized price.
In the subsequent annual business plans presented by the companies it was noted that they detach themselves from the pursuit of profitability and appeal to social role of companies, as if private companies that make money do not have a social role.
But as we said at the beginning, the multimillion-dollar losses of companies – justified or not – they don’t upset officials much the national government or company directors.
Yes, there is a clear interest, on the part of the government and in particular of the Christian wing, for closely monitor the number of private companies.
Weeks ago, a report prepared by the Center for Argentine Political Economy (CEPA) highlighted the “billing boom” of four specific companies: Ledesma, Aluar, Río de la Plata and Arcor Mills. CEPA is led by economist Hernán Letcher, a favorite of Cristina Kirchner, and focuses on invoicing, expanding profit margins and reducing the cost of labor for companies.
Regarding profit margins, the government has repeatedly expressed its opinion complaints, disputes. But it was the Deputy Minister of Economy, Gabriele Rubenstein, who tried to cool the discussion, shortly after the appearance of the CEPA report: “Until we achieve the unification of trade, there will be some disorder and higher-than-normal company margins,” said the official, who in turn he added: “Blame for the disorder of exchange rates, the very high gaps, the obligation to finance 180 days to import, quotas, companies do not have it. Even if there are regulatory abuses and corruption. It is our responsibility (Government) that all this improves “.
This discussion takes place while most public companies, as has been said, need the lifeline of the Treasury to stay on their feet.
It should be noted, if necessary, that the pesos received, for example, by Aerolineas Argentinas come from the collection of the taxes paid by all taxpayers. Also the VAT that a family below the poverty line pays on every basic food purchase. A house whose members are far from being able to board a plane.
Source: Clarin
