Sergio Massa and a Budget project.
A dollar without “jumps” adjusted to the pace of prices, greater fiscal adjustment and a sharp decline in inflation. These are some of the guidelines emerging from the 2023 Report that the government sent to Congress at night. Along with the project, he also added another novelty: a separate print with a forte reduction in tax exemptions by $ 1.6 billionwhich would allow for a fiscal surplus if approved.
With that optimistic schedule, Sergio Massa is committed to achieving the objectives of the IMF and stabilizing the economy ahead of next year’s elections, a time when economists predict an acceleration of inflation and stagnation in activity. Official calculations, on the other hand, predict inflation of 95% in 2022 and 60% in 2023, growth of 2% – less than 4% in 2022 – and an increase in the dollar to $ 269 in December next year.
“The exchange rate will be slightly above inflation, there will be no specific jumps, it will be managed by the Central Bank based on the evolution of relative exchange prices,” said the Ministry of Economy. There they also assured that “nothing is being studied” regarding the increase of the dollar card for tourism abroad, while acknowledging that they have received proposals from private chambers.
Unlike last year, the budget regime it is part of the agreement reached in March with the Fund, which predicts a reduction of the primary deficit from 2.5% in 2022 to 1.9% of GDP in 2023, which represents a saving of almost 500,000 million dollars, which should be greater if red closes at 3 this year. % as a private estimate. The idea is that the fiscal adjustment, added to a monetary issue of 0.6%, reduces inflation.
In this way, the Ministry of Economy has validated an anti-inflationary recipe to which Kirchnerism had hitherto opposed. “Lowering the fiscal deficit reduces the need for monetary financingwhich is the basis of inflation, it is a requirement to have fiscal order, you are increasing the fiscal space because you reduce spending or have collection, the monetary issue is decreasing and is the basis of the decrease in inflation “, sources from the Palazzo del Tesoro has indicated. .
The “big two” to reduce reductions in public accounts will be the removal of energy and transport subsidies (0.6% of GDP) and, on the other hand, the decrease in energy imports due to energy self-sufficiency due to Gas Plan 4 and 5 In this framework, spending will increase by 65% per year and there would be no new taxes, although team sources assure that work on the real estate revaluation is still ongoing.
Massa will also present an addendum to the budget law to reduce the tax breaks that are part of the so-called “fiscal expenditure” by 2.4% of GDP. This package includes the Magistracy with the exemption from the payment of income tax and the Tierra del Fuego tax promotion scheme, the reduction of tax rates for the financial sectors, the special laws for the regions and the deductions on the income for company directors.
“If you think we can improve, here is a menu of tax breaks that can improve, like the inmates of Tierra del Fuego, who now pay 7% and somehow represent less income for the state, if there is one they think. a reduction or a reduction may be added to the calculation of the surplus, in line with the dialogue with the Fund “, they stressed to Economy, where they also bet on the advancement of the agreement with the US to tax 100,000 million dollars.
Giovanni Manuel Barca
Source: Clarin