The fiscal deficit was $ 337,234 million in June and the IMF target will be met

Due to lower collections and higher spending, May government accounts showed a primary deficit of $ 337,234 million, the largest so far this year. The result contrasts with the red of 153,217 million dollars recorded last year and excludes most of the real estate revenues that the government had calculated, given that in May they reached the annual limit of 0.3% allowed by the IMF.

The national public sector recorded a primary deficit of $ 321,644.4 million in June. The interest payments on public debt, net of intra-public payments, were $ 74,933.0 million, reaching a financial deficit of $ 396,577.45 million. The accumulated primary result of the first half instead recorded a deficit of 755,975.7 million dollars, or 0.99% of GDP, while the financial result recorded a negative result of 1,244,916.4 dollars, given the interest payments on the debt.

In terms of the program with the IMF and the primary deficit target of 2.5% of GDP, the deficit in the half year was $ 800,681.4 million. It is that an annual limit has been set for the calculation of income from capital income connected to primary issues of public securities equal to 0.3% of GDP. “Considering this limit, the primary deficit is $ 800,681.4 million (1.05% of GDP), reaching the goal for the first half set in the Extended Facilities Program ($ 874,382.5 million; 1.14 % of GDP), “a statement from the Ministry of Economy explained Wednesday evening.

In June, total public sector income was $ 1,201,888.0 million, an increase of 56.8% in annual terms. This figure is affected by the collection of the Solidarity and Extraordinary Contribution to help moderate the effects of the pandemic. Without considering these resources, this variation would have been 77.5%.

The top tax increases were earnings ($ 91,650.8 million; 115.7% y / y), VAT (net of refunds) ($ 93,005.2 million; 76.9%), payables and receivables ($ 42,934.0 million; 64.0%) and personal assets ($ 17,173.6 million; 104.4%). In particular, the Income Tax was increased following the expiry of the Corporate Reports Closing in December 2021, reflecting the economic recovery of that year. On the other hand, foreign trade taxes show an improvement of $ 31,355.3 million. Import duties increased by 63.5% due to growth in economic activity, while export duties increased by 17.9%.

“National public sector spending was $ 1,598,465.4 in June 2022, which is 64.0 percent higher than the same month last year,” Economy reported.

Social security benefits amounted to $ 704,656.4 million (72.7% y / y). This dynamic is explained by the impact of the current mobility formula (Law No. 27.609), which shows improvements as the economy grows and revenues and wages recover, and with the impact of wage regularization and other concepts that they increased the liabilities of the Armed Forces and Security.

In the last few hours, Silvina Batakis has brought ministers, governors and mayors back to reality. She explained to them that things are not going well and she anticipated that the next few months are not going to be any better. It was a preview of the deterioration shown by the public accounts: in June they showed a primary deficit of 337 billion dollars, a jump of almost half a point compared to the previous month, which further complicates the austerity plan announced by the minister.

Argentina will reach its accumulated fiscal target until June. Martín Guzmán had signed a $ 566.8 billion pledge but in June, with the first review, the agency agreed to recalibrate the target and eventually set it at $ 874.4 billion.