2022 budget: the government presents it this Thursday through a DNU

The Government presents the 2022 Budget this Thursday at 10 am. The text will be reflected in a Decree of Necessity and Urgency (DNU) published in the Official Gazette. The document, which, according to what was agreed with the International Monetary Fund (IMF), should have been published on April 15, arrives late and with a new perspective on inflation and the dollar.

The battle against inflation will not be easy and a sharp drop, experts say, could generate an explosion. So, in this context, the Minister of Economy, Martín Guzmán, had to change his calculations and now the text of the 2022 Budget would contemplate a price increase of over 60% for this year.

After the rejection of the draft budget last year, the Executive extended the 2021 budget and it then agreed with the institution to present a new one in mid-April. Finally, it will take effect this Thursday with a two-month delay.

Weeks ago, official sources confirmed to Clarín that “the decree could be ready in a week or two, it is quite advanced”. Guzmán amended it in line with the memorandum’s fiscal objectives and the IMF review.

On Tuesday, the chief of staff, Juan Manzur, announced that the economy minister was working on new measures and that they would be announced in the coming days.

“The minister is working on the indication of the President in some actions that will be taken, certainly in the next few days; he will formalize them in front of the press, ”he explained. And he added: “We will give priority to growth, work, inclusion, development, within the framework of a very federal country”.

One of the assumptions that has been revised in the budget is inflation. Last year the Economy had already estimated a trend in evolution (29%, 33% and 45%) and in any case below the real rise (50.9%). For this year, the agreement with the Fund provided for a range between 38 and 48%. Now, the new official projection of inflation would be around 60% per year.

The government too it will recalibrate the dollar, albeit behind predicted inflation. And the presentation of the balance sheet takes place in the midst of the overheating of parallel dollars. Yesterday, however, the blue fell by seven cents and stood at $ 217.

In relation to the fiscal deficit, the economy will have to see how it will manage to coexist between expanding spending and a policy of reducing voices agreed with the IMF. The forecast of the initial 2022 budget was that expenses will amount to $ 13.2 billion and that the primary deficit (the payment of interest on the debt does not count) it reached 3.6% of GDP.

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