Due to the sharp rise in spending, as a result of state aid programs to counteract the effects of the coronavirus crisis, the National Public Sector’s primary fiscal deficit remained very high in June, reaching $253,706 million.
In the same vein, the interest payment of public debt, net of intra-public sector payments, amounted to $34,859 million. Thus, the SPN’s financial result recorded a deficit of $288,565 million. With the June result, the deficit accumulated in the first half represents 3.3% of GDP, reaching $900 billion, according to consultancy Ecolatina. In June, total public sector revenue totaled $402,899 million, up 7.8%. Despite the persistence of the negative effects of the pandemic and the means of isolation and social estrangement, year-on-year growth in resources accelerated from May, the report said.
For its part, tax revenues grew 26% year-on-year driven by social security contributions and contributions (+23%), debit and credit taxes (52%) personal property (+293%). It also influenced the increase in the rest of the taxes ($11.376 million, 53%), mostly explained by the COUNTRY tax (+ $10,681.4 million). Property incomes were affected by financial relief measures for families, while capital resources show a substantial decline due to the high basis of comparison. As for the former, they received a drop of 20.1% year-on-year due to the suspension of the payment of anSES appropriations to the private sector.
Compared to the latter, a drop of $50,507 million (-78%) was observed. explained by the sale of publicly owned fixed assets recorded in June 2019 in the amount of $44,596 million and, to a lesser extent, by anSES’s lower available resources for the financing of the Historical Repair program.On public sector surcharges, primary expenditure amounted to $656.605 million (+73%). This amount reflects the support of the measures implemented by the National Executive Branch to contain the employment, production and income of families under the pandemic, as well as compensating for the fall in collection of provincial administrations. In terms of current transfers, there was a year-on-year increase of $175,296 million (+204%), of which $150,241 was perceived by the private sector. Emergency Family Income (IFE) and the Emergency Work and Production Assistance Program (ATP) concentrated about $99.75 billion of the increase.
For its part, the Feed program recorded an increase of $8.050 million and employment support allocations increased by about $2.950 million. With regard to health containment measures, additional oversights of the Superintendency of Health and PAMI were funded for nearly $12.5 billion. In the context of the economic emergency and the consequent containment of utility tariffs, energy subsidies in June recorded a year-on-year increase of $26,022 (+115%). Within this variation, the increase in financial assistance to CAMMESA amounted to $17.2 billion.
For transfers to the public sector, those to the provinces increased by $15,913 million (+304%). This increase was explained by transfers to provinces for special agreements ($8,106 million), erogations aimed at strengthening provincial planned funds not transferred to SIPA ($2,098 million), reinforcements to provincial hospitals ($2,088 million) and attendance at the National Teaching Incentive Fund ($1.722 million). Finally, in terms of social security benefits, they totalled about $291,375 million, thus marking a year-on-year growth of 45.4% as set out in Decree No. 163/2020.
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