Registered Treasury Accounts a primary deficit of $227.838 million in Novemberwhich reflects a 69.2% increase over last year and a worsening over the prior month, when the income-expense mismatch totaled $129,122 million.
The result was due to slowdown in collection due to a decline in export withholding earnings and despite spending growth below the inflation rate year-on-year (92.4%). However, the primary red was below the $337 billion peak reached in June.
“In November, the national public sector had a primary deficit of $227,838.3 million, which is 0.3% of GDP. Thus, between January and November, a primary deficit of $1,453,012.6 million accumulates, excluding proceeds from the primary issuance of government bonds,” the Ministry of Economy said.
Interest payments on government debt – not counting payments between public sector organizations – were $303,439 million, the highest level for the year. Therefore, if you add the burden of these liabilities, the financial deficit amounted to $531,277 million in November, 119.5% more than last year.
Collections were $1,422,492 million, up 79.4% year-over-year driven by tax revenues, primarily due to a 138.9% increase in Revenue-related revenues, which totaled $191,551 million due to of the collection of the second tranche of the extraordinary payment as a result of said tax paid by the companies.
This is followed by the collection linked to VAT net of refunds (99.9%), contributions and social security contributions (94.1%) for the increase in the average salary of the private and public, and the tax on credits and debits ( 92.1%), while export duties showed a decline (32.1%) after the end of the 1 dollar soybean in late September.
On the spending side, the public sector recorded $1,650,330.7 million, an increase of 77.9%. “In this sense, the cumulative primary expenditure of the National Public Sector in the January-November period showed a variation of +73.0% y/y compared to the same period of the previous year, thus consolidating a process of deceleration of real primary expenditure for the fifth consecutive month,” said Economía.
The item with the lowest growth was that of economic subsidies (34.8%), with a slight increase in those for the energy sector (26.6%) in a month with lower imports. This is followed by current transfers to the provinces (40.2%), social benefits (84.3%) and management expenses (84.4%), with salaries above inflation (93.5%).
Within social security spending, family benefits (43.7%) and retirements (74.8%) remained below inflation, while the AUH matched the rate of prices (92.4%). The items that exceeded inflation were non-contributory pensions (97.5%), other social benefits (112.5%) and PAMI pensions (142.5%).
Finally, capital expenditure was the item that grew the most in November (113.4%), led by housing (341.3%), other (232.6%) and energy (215.8%) .
Source: Clarin
