In March 2024, and despite the strong liquefaction of primary spending, due to the decline in revenues For the first time this year, the implementation of the National Budget yielded a financial and primary deficitaccording to ASAP (Argentine Budget Association).
THE Total revenue is $5,498,595 million and total expenses are $5,621,796 million.
The Report adds that “as a consequence of the positive balances accumulated in the months of January and February, a financial surplus of 728,152 million dollars was obtained in the first quarter, which contrasts with the deficit of 1,444,966 million dollars recorded in the same period of 2023, and a primary deficit of $1,444,966 million.” resulting in a surplus of 3,484,691 million dollars against a deficit of 760,827 million dollars”.
But what happened in March?
• The total income of the National Public Administration (APN) adjusted for inflation they had a decline of 14.1% compared to the same month of the previous year, mainly due to the decline in VAT collection (-30.5%) and the continuing trend of contraction in social security contributions, which show a decline of 22.1% on an annual basis. On the other hand, incomes linked to foreign trade increased, such as export duties with an increase of 52.8%.
• THE Total contracted accrued expenses of 42.9% in interannual terms. All expenditure items suffered decreases, highlighting the declines in Capital expenditure (-84.3%), Social security benefits (-38.7%) and Current transfers (-38.4%).
•Transfers to universities also fell by 41.7% and public sector salaries fell by 26.3%.
In the first quarter of 2024, revenues recorded a year-on-year reduction of 3.6%. And expenses decreased by 30.6%, which increases by almost 6 percentage points if you deduct interest (primary spending decreased by 36.4%).
From the disaggregated analysis of expenses, the most important decreases concern: Social security benefits (-36.2%)Current transfers (-34.4%) and Salaries (-17.1%).
“Capital expenditures are at current levels almost a total block on public investments, decreasing by 83.4% (Capital transfers to the Provinces practically decreased by 96.5%), highlights the Report.
From these numbers it can be deduced that, due to the decline in economic activity and consumption, tax revenues linked to the internal market are reducing. they are resentful and this forces them to further liquefy expenses, especially those related to Social Services and the Provinces. Yet, the Government failed to achieve a fiscal surplus last month.
ASAP clarifies that “due to the attention that the national government’s fiscal performance is attracting, the Report “constitutes a preview” of the one published in the middle of each month. And the data as of April 5 corresponds to the revenue collection and execution of APN expenses as of March 31.
Source: Clarin
