In the new budget, expenses increase by 51% compared to 2021

Due to higher inflation, and given that the 2022 Budget It was not approved by Congress, through the Decree of Necessity and Urgency 331/22, the Government extended last year’s extended budget and authorized to increased resource calculation of $ 4,357,206.5 million; and an increase in expenses of $ 5,567,988.4 million.

“This determines a deterioration of the financial result of the National Public Administration of $ 1,210,781.9 million“, According to the calculations of the Argentine Budget Association (ASAP)

It’s a new budget modification – this time much broader and more generalized – to adapt and modify the games to the new inflationary reality and the changes made this year, especially in Energy, social security, social development and public debt, among the main items. Is that the Budget 2022 project was prepared in September last year with an inflationary estimate for this year of 33%. Subsequently, in the agreement with the IMF, this projection was raised to 38-48% and now to 52/62%.

Due to the evolution of prices in these first five months, in addition to inflationary expectations and rising international inflation and expected changes in income and expenses, this new official inflationary projection could remain “short” forcing new budget changes in scope. Private consultants have already estimated annual inflation above 72%.

According to the Congressional Budget Office (OPC), as of the beginning of June, and due to previous changes to this new DNU, the credit for reported spending from fiscal year 2021 was $ 81,546 million and revenue was $ 4,533 million. , with a deterioration in the financial result of 77,013 million dollars. The current DNU is much larger and practically represents almost a new Budget.

Expenses increase by 51.3% ($ 5,567,988.4) in connection with current credit ($ 10,857,496.2 million).

Entries for the Ministry of Labor, Employment and Social Security (includes ANSeS) increased by 54.8% ($ 2,341,664.4 million), while on the revenue side higher income from contributions and social security contributions for $ 1,516,979.5 million from the National Social Security Administration (ANSeS) and the respective pension funds of the Argentine Federal Police and the Institute of Financial Aid for the Payment of Military Retirement and Pensions.

Secondly, Tax revenues of $ 3,558,712.4 million are incorporated: due to the higher collection of VAT ($ 1,056,153.5 million), Foreign trade ($ 973,488.6 million), Profits ($ 573,947.6 million), Debts and credits ($ 540,234.2 million), Personal property ($ 75,613.8 million)Taxes for an inclusive and supportive Argentina (COUNTRY) ($ 74,348.1 million), internal ($ 66,475.7 million), among others.

For their part, the “Public debt services “ increased by 53.3% to $ 412,848.1 million “allocated to the payment of debt service placed in domestic currency $ 315,060.5 million, to service of debt placed in foreign currency $ 19,684.8 million and to interest on loans received $ 78,102.8 million, “according to the ASAP report.