The government says it is willing to adjust spending to reduce the fiscal deficit Even in an election year. But what seems clear is that hescissors will not go through public companies. This group of companies showed an operating deficit of nearly $4.9 trillion in 2022 and in 2023 it could be around 5,000 million dollarsas a floor.
Specifically, businesses will receive wire transfers from 1,136,524 trillion pesos, equal to 5051 million dollars if pesos are converted at the average official exchange rate ($225) projected for 2023.
The data emerge from the budget items assigned for this year by the Ministry of the Economy. Regard Direct treasury transfers which will come into force during the year. The items were calculated taking into account that an inflation target of 60% had also been set in the Financial Statements. If reality marks a rise in inflation, as expected, companies will receive more money. Furthermore, it would be unthinkable for companies not to consume the entire original batch. In other words, the sum of money intended to cover the operating deficit is a floor. The final figure will surely end up being higher.
The amazing thing about these games is that there are no major cuts compared to 2022. Cuts that were expected if one takes into account that the the rate increases of public services pursue precisely the objective of reducing expenditure on subsidies.
For example, tighten up, tasked with importing energy at market price and selling it to the local market at government-mandated price, will receive $570,000 million in 2023, equivalent to US$2,533 million. This only applies to ongoing charges. He has an extra game of $190,000 million, (844 million dollars) for capital expenditure. This is basically the funds allocated to pay for the construction of the tubing Nestor Kirchner. In total, Enarsa will receive $3.377 million this year. In 2023 (nine-month data) it had already received $3,172 million.
It is known that, despite the savings in energy purchases announced by the government weeks ago, and cuts in subsidies, Enarsa will not significantly reduce its operating deficit.
Enarsa explains more than half of the operating deficit of public companies. And red is at least “understandable” when you think about it the government’s tariff policy is by its nature deficit. In other words, with a tariff adjustment that brings the costs of public services back to market values, Enarsa should drastically cut its operating red.
A case similar to that of railway conglomerate Argentine Trains: last year its operating deficit exceeded the equivalent of $3 million a day. In 2023, it will receive items worth 260,000 million pesos, or 1,155 million dollars. This produces a daily operating deficit of $3.16 million.. The expected rise in ticket prices (which would also adjust to inflation starting in March) is not enough to reduce the train operating deficit. A deficit that is directly related to the cost of tickets, which must be among the cheapest in the world. And also that it is about largest employer in the country: more than 24,000 workers.
Control of the railway company fell back in men appointed by the Renewal Front led by Sergio Massa. It is no coincidence that the authorities enjoy promoting the reopening of passenger branches in the interior of the country, beyond the economic logic of these works. Indeed, in addition to the funds to cover the operating deficit, the company The Railroad Infrastructure Administration will receive $150 million to cover the operating deficit and investments, in fact, in the infrastructure of the railway service. Moreover, the cargo service will receive an additional $100 million. But there’s more: Railway Human Capital Development will receive $42 million.
The third company that will receive the most money from the Treasury is headed by Malena Galmarini, wife of the Minister of Economy. Aguas y Saneamientos Argentinos (AYSA) has set aside items of $70,000 million or $311 million to finance its operating deficit. But it will also receive 102,051 million pesos, equal to 453.6 million dollars, to finance infrastructure works to expand drinking water and sewage services.
Electricity, trains, running water, and sewerage are services for which the state deliberately charges less than what is required to cover operating expenses. This is not the case from now on with Aerolíneas Argentinas, which sells its tickets at prices similar to those of the competition.
In 2023, Aerolíneas Argentinas will receive $90,000 million, or US$400 million over the average dollar forecast for this year. It is an a priori figure lower than what it consumed in 2022, but it increases the cost for the State of maintaining the flag line: in the last decade it has consumed almost 6,000 million dollars.
In the top 10 companies that will receive the most funds from the Treasury appear Argentine post Argentine radio and television; Rio Turbio Coal Deposits and Road Corridors.
The case of YCRT is noteworthy. It had revenues of less than $50 million last year and received nearly $10,000 in items just to pay salaries, which account for 95 percent of its operating expenses.
Public companies employ approx 92,000 people. Although almost all give losses, last year they added 1,800 more positions.
As can be seen, the deficit of these companies cannot be explained only by the tariff policy.
Source: Clarin
