The 2023 Budget project foresees a growth of the Gross Domestic Product of 2% for the next year and an inflation of 60%, official sources advanced.
The initiative will formally enter through the Lower House Ticket Desk in the last hours of the day this Thursday, with which the Ministry of Economy will meet the deadline set for the presentation of the project.
In regards to the dollar exchange ratethe bill, which bears the signature of the head of the Treasury Palace, Sergio Massa, provides for “keeping the exchange rate updated” so it is expected that by next December it will be $166.50 per dollar and that it will end in 2023 at $269, averaging $219 throughout the year, the sources noted.
They also specified that the primary deficit projection for next year it will be equivalent to 1.9% of GDP, against the 2.5% forecast for 2022, in line with the commitment assumed by the national government in the agreement signed with the International Monetary Fund (IMF) last March.
This drop will be made from a reduction in subsidies and the elimination of some current tax exceptions.
In this last aspect, the novelty is that this project of Budget Law will go with an annex in which the possibility of eliminate some tax benefits which add up to an amount equivalent to 2.4% of GDP.
Among them will be the exception of the payment of Income Tax in judgesbenefits that company directors have, the internal taxes of Tierra del Fuego, among others.
These initiatives are in line with the discussions held with the IMF – reflected in the agency’s statement last Monday, after the meeting that Minister Sergio Massa held with Kristalina Georgieva.
On the side of the subsidies An amount equivalent to 0.6% of GDP will be reduced in those earmarked specifically for the energy sector, that in this way they will remain in a figure of the order of 1.6% of GDP next year, either due to savings in people’s consumption or due to the updating of rates.
It will also be reduced by 0.1 of GDP transport subsidy which will remain at 0.4% as compensation to interjurisdictional groups.
From the Ministry of Economy they stressed that the transport fee of each province will have to provide each district.
In regards to the public workthe 2023 Budget project contemplates funds equivalent to 0.3% of GDP.
In regards to dollar, The project plans to “keep the exchange rate updated” so it is expected that by next December it will be $166.50 per dollar and that it will be worth $269 by the end of 2023, but with an average of $219 next year. sources specified.
It also projects that the Central Bank maintains a positive rate with respect to inflation and that it accompanies the loss that they expect to be having with the passing of the months.
In this context, everything points to the growth of the economy will be 2% compared to 4% with which it will close this year.
As a counterpart, the inflation expectation is 60% and estimates that this year it will close around 95%, below the three figures projected by most market analysts.
In addition, the projections contemplate that income is recoveredat 2%, by the end of 2023, with a unemployment rate which would remain around 7% of the economically active population.
In addition, it is expected increase in exports, of 7.1%, against imports that would increase next year 2%. In this way, the trade surplus it would go from US$7.7 billion this year to US$12.3 billion in 2023.
The chief of staff, Juan Manzur, assured yesterday that the measures adopted by the Government linked to the utility rates “they are very far from constituting a price increase”, when maintaining that it is a matter of “progressively redistribute subsidies”.
Manzur, speaking in the Chamber of Deputies, said that “the State will continue to subsidize the rates of the sectors with fewer resources” and stated that this decision has “a clear criterion of justice and distributive equity”, when answering a question in that sense made by an opposition deputy.
