In relation to culture-related bodies, From a fiscal point of view, the Executive’s megaproject does not imply budget relief. In some cases, has a tax cost because the resources that would no longer be received exceed the expenses of these institutions and Funds. In others, the fiscal outcome is neutral. And in others there is no data that allows us to establish a definitive break-even, but the impact on the national budget is very minimal.
Here’s how the Congressional Budget Office (CPO) describes it in detail:
• Repeal of law no. 24,800 establishing the National Theater Institute (INT) and reallocating its resources. The resources that would be lost would be compensated by cost savings, “does not imply a net fiscal impact.”
The Report explains that the megaproject does not change the specific allocation of 10% of the audiovisual communication services tax collection intended for INT. Consequentially, a part of these resources would be incorporated into the sharing, “Therefore resources would be reduced by 0.0008% of GDP. And on the expenditure side, a saving of 0.0008% of GDP would be generated because personnel expenses would be available to the executive power. “which is why it doesn’t constitute savings”. The conclusion of the Report is that “the repeal of Law 24,800 would not imply a fiscal impact for the National Treasury”.
• Repeal of the legislative decree establishing the National Fund for the Arts and reallocation of its resources. This could result in a fiscal cost of the order of 0.0004% of GDP for the Treasury.
This result is due to the fact that 0.0008% of GDP would not be derived from the own resources that the organization currently receives, mainly from the collection of royalties, while Expenditures would be reduced by 0.0004% of GDP.
• Repeal of Title V of Law 23.351, which establishes the Special Fund for Popular Libraries. The resources that would no longer be received would represent almost 0.0006% of GDP, and it is not possible to know the impact on the expenditure side, we read in the Report.
• Modification of the resources received from the National Institute of Cinema and Audiovisual Arts. The fiscal resources that the organization would no longer receive as a tax on recorded videograms would represent a sum equivalent to 0.0024% of GDP.
• Amendment of the Creative Law of the National Institute of Music regarding the resources that make up the Financing Fund, which would be determined by the Ministry of Culture of the Nation. The measure would not have a fiscal impact, as the specific allocation remains in force.
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Source: Clarin
