Due to the decrease in pensions and other social benefits and Energy, in April Total Public Expenditure decreased by 14.5% in real terms – adjusted for inflation – compared to a year ago. And in the first 4 months it accumulates a decrease of 7.6%.
Without calculating the interest on the debt, the drop in primary expenditure was 9.2%, but the increase in interest expenditure reduced the final result to -7.6%, according to data from the Congressional Budget Office. (OPC).
In the bottom line, this reduction in expenses has largely been neutralized by the decrease in collection, in particular the decline in the collection of taxes related to foreign trade.
Pensions and pensions decreased by 6.1% in April, Family allowances -29.9%, Work enhancement -12.2%, Food policies -13.1%, Progress scholarships -38.2%, Energy contributions – 29.5%. On the other hand, transport subsidies and non-contributory pensions grew by 24.8% (+11.8%)
In the first quarter, “total revenues were down 9.1% real year-over-year and expenses were down 7.6% real. Consequently, a financial deficit of $1,828,756 million, with a change in real terms of -2.2% in relation to the deficit obtained in the same period of 2022. As regards the primary result, which does not include the payment of interest on the debt, the deficit amounts to 1,035,318 million dollars, with a negative change in real terms of 9.3 % on an annual basis -year”, reads the OPC Report.
The Report indicates that in the January-April period, in the field of primary expenditure, the reductions of 29.5% per annum in energy subsidies, 29.9% in child benefits and 26.0% per annum in capital expenditure, mainly from transfers for investments (28.4% YoY). In the case of pensions and pensions, although the percentage reduction was more contained (2.5%) due to its participation in the structure of primary expenditure (41.0%), it was the fifth item with the greatest contribution to the reduction expense.
As a result of this trend, a financial deficit of 1,828,756 million dollars was recorded, 2.2% lower in real terms than that obtained in the first four months of 2022. Excluding the payment of interest on the debt, the primary result it was negative by $1,035,318 million, a decrease of 9.3% compared to the deficit reached a year ago.
Regarding retirements, the Report indicates that between the January 2022 and April 2023 points, with bonds, the minimum credit was “in sync” with inflation, with a real increase of 2.4%. Conversely, those who did not receive bonuses recorded a real drop in their income of 18.4%.
Source: Clarin
