The government has increased the Expenditure Budget by more than $52,000 million, for discretionary transfers to the provinces and price control

In his first net budget change measure of the year, the new head of the cabinet of ministers, Agustin Rossisigned with the Minister of Economy, Sergio MassaAdministrative decision 122/2023 which provided for the first net increase in the budget of the current year, less than two months before the start of the year, with a new authorization of expenditure to be executed for 52,327 million dollars, and in the same magnitude the total deficit for the year.

Characteristic of an election year and indicative of the Government’s concern for controlling inflation, most of the budgetary modification is explained by the increase in the amount of discretionary transfers to the Provinces and Municipalities for 40,000 million dollars; and for the “Definition of internal trade policies, Ministry of the Economy” -Fair prices-, for 11,050 million dollars, according to the 31-page statistical annex.

This is apparent from the recitals and reasons for the measure published in the Official Journal:

“That it is appropriate to adapt the current budget of the Public Defender of Audiovisual Communication Services, acting within the framework of the National Legislative Power, in order to meet urgent expenses for its normal operation.

“That the aforementioned reinforcement be financed by incorporating the remaining resources from previous years.

Most of the fiscal expansion is explained by the increase in discretionary transfers to provinces and municipalities for $40,000 million; and for the “Definition of Internal Trade Policies, -Fair Prices-, for 11,050 million dollars

“That it is appropriate to include in the budget of the Nuclear Regulatory Authority, a decentralized body acting in the orbit of the General Secretariat of the Presidency of the Nation, the remaining resources for the year 2022 of the Preparatory Commission for the organization of the treaty for the total prohibition of nuclear tests (Ctbto) in order to continue the activities of the international surveillance system.

“That it is necessary to increase the budget of the Head of the Cabinet of Ministers with credits financed by IBRD loan No. 9224-ar -“Digital Inclusion and Public Services Innovation Project in Argentina – Pidisp” for the acquisition of VSAT terminals to provide connectivity services, robotic kits, as well as for the updating of the data center of Empresa Argentina de Soluciones Satelitales SA (Ar-Sat), a national company in the public sector operating in the domain of the head of the cabinet of ministers.

“That it is necessary to increase the budget of the Ministry of Foreign Affairs, International Trade and Worship by incorporating the remaining resources obtained from Public Auction No. 31/17 of the properties located at Calle Cerrito No. 1244/46 and 1248 of the Autonomous City of Buenos Aires, to finance part of the acquisition of equipment and scientific material for the Argentine Antarctic Institute, the Carlini base and the ARA Almirante Irizar icebreaker.

“That in order to enter the personnel expenditure credits for the corresponding type of currency, the budget of the general staff of the army, a decentralized body acting within the framework of the Ministry of Defence, is modified.

“That it is necessary to increase the current budget of the Secretariat of Industry and Productive Development of the Ministry of Economy, in order to respond to the Petroleum Sector Promotion Program to maintain a reasonable price for bottled and refined oils on the internal market, as well as for the broadcasting of the “Fair Prices” programme.

“That said increase be financed by a reduction of the same amount of current transfers to the National Fund for Productive Development (Fondep).

“That, similarly, the said Secretariat deems it necessary to ensure the non-refundable contributions (ANR) of the calls for applications National Supplier Development Program (Prodepro) and the National Program for the Development of Industrial Parks.

“That said, increases in capital spending are offset by a reduction of the same amount in current transfers to the Argentine Guarantee Fund (Fogar).

“That it is necessary to increase the budget of the Secretariat of Agriculture, Livestock and Fisheries of the Ministry of Economy, in order to strengthen the program Policies for the increase of production and productivity in agro-industrial sectors in a sustainable manner and to meet the objectives of the programs financed by the funds of the Exporter Increase Fund created by Article 9 of Decree No. 576 of September 4, 2022 and its complementary regulations.

“That it is necessary to increase the budget of the Ministry of Culture with credits transferred by the National Social Security Administration (ANSES), a decentralized body acting in the orbit of the Social Security Secretariat of the Ministry of Labor , Employment and Social Affairs. Security, to finance the realization of artistic, socio-cultural and formative activities of exchange and reflection, favoring the participation of the beneficiaries of the social security of the said national administration, within the framework of the cooperation agreement between the National Administration of social security (ANSES) and the Ministry of Culture (conve-2021-100941744-apn-mc) and its amendment no. 2 (conve-2022-136432439-apn-mc).

“That it is necessary to increase the investment credits of the National Social Security Administration (ANSES), within the framework of IBRD loan no. 8633-ar – “Project for the protection of children and youth”, which aims to partially finance the Universal Allowance for Girls (AUH) program and extend its coverage to all children and adolescents in poverty throughout the national territory.

“That it is expedient to offset the current budget of the National Administration of Health Laboratories and Institutes” Dr. Carlos G. Malbrán” (Anlis), a decentralized body operating within the Ministry of Health, in order to meet the expenses related to the project “Bacterial vaccines for the Argentine national vaccination calendar”.

“That, in another order, it is necessary to increase the current budget of the aforementioned organization for the purchase of supplies and the attention of technical and professional services, financed with the incorporation of the remains of donations received from the Pan American Health Organization.

“That it is appropriate to adapt the budgetary appropriations included in the orbit of jurisdiction 91 – Obligations at the expense of the Treasury intended for transfers to the provinces within the framework of the various agreements signed between them and the national State.

With this fiscal expansion, not only is the deficient forecast of the 60% inflation target that the Economy keeps unchanged, but also that in the calculation of each budget the spending plan for the following year is not really considered, because these are extensions that do not respond to unexpected phenomena.

The total amount of expenditure to be executed amounts to 29,060 billion dollars, which, compared to resources estimated at 22,550 billion dollars, will determine a total deficit of 6,500 billion dollars.

In this way, the total amount of expenditure to be executed amounts to 29,060 billion dollars, which, compared to the resources estimated at 22,550 billion dollars, will determine, if the two concepts are fully executed, a total deficit of $6.5 trillion.

According to the Ministry of Finance, as of February 17, 9.93% of budgeted expenditure had been executed (without the new budget modification) and 10.59% of resources, accumulating a deficit result of $6.45 trillion.

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