The president of the Chamber of Deputies, Cecilia Moreau, convened for this Tuesday the Blocks of the Frente de Todos and the opposition to discuss the debate on the 2023 Budget project and agree on the mechanism for dealing with this expense and resource initiative, which will begin to be discussed in the first days of October with the presentation to be made by the Minister of the Economy, Sergio Massa.
The national government sent the 2023 Budget last Thursday night just as the session was taking place in which the extension of six taxes that expire next December and that are key in the tax scheme, since they explain more than 32 percent of the collection.
The initiative contemplates a total expenditure of 29 billion pesos for next yearproject a growth of the Gross Domestic Product (GDP) of 2 percent, an inflation of 60 percent and a primary deficit of 1.9%.
Also a reduction of subsidies for the energy sector and a proposal to discuss the elimination of tax exemptions.
Moreau called for dialogue with the heads of the Frente de Todos bloc and the opposition and the authorities of the Budget Commission – headed by Carlos Heller – to define the roadmap that will have the treatment of the main law that wants to approve the national government this year.
In 2022 the approval of the norm in Parliament was frustratedwhich motivated the Executive Branch to extend the 2021 law.
The intention of the ruling party is to be able to agree on a work scheme with the opposing blocks of Together for Change, the Federal and United Provinces interblocks, the Ser block, the Neuquén Popular Movement, the two blocks on the right and the left.
The agenda of the Frente de Todos bench -led by Germán Martínez- contemplates for the first days of October the formal presentation of Minister Massa, who will present on the main axes of the project of expenses and resources.
One of the issues that is sought to be agreed with the opposition will be the mechanism of the round of consultations that will include the visit of the ministers of the Executive Power, to then begin with the conversations that allow reaching an agreement to ensure the sanction of the 2023 Budget between late October and early November in the lower house.
The search for agreements is central for the ruling party to be able to build a majority that allows it to sanction the Budget since it has 117 votes, which requires at least the approval of a dozen legislators from other forces to ensure its approval.
The first litmus test was passed last Thursday when With the help of the eight legislators from the Federal Interbloc – chaired by Alejandro “Topo” Rodriguez – four from the United Provinces, and the Neuquén Popular Movement, he obtained 129 votes to approve the extension of taxes.
That is why the agreements that it can build with these provincial blocs are key, to which it hopes to also add the radicals that have administrations such as Jujuy, Mendoza and Corrientes, with which it is likely that after the round of consultations a stage of negotiations will begin to advance agreements.
The spending plan
The Budget project 2023 foresees an inflation of 60 percent for next year, and a primary deficit equivalent to 1.9% of GDP, against the 2.5% contemplated 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 cancellation will be made from a reduction of subsidies and elimination of some existing tax exceptions such as the one with judges who do not pay Income Tax benefits that company directors have, the internal taxes of Tierra del Fuego, among others.
Another central point will be to reduce 0.6% of GDP in those earmarked specifically for the energy sector, which in this way will remain at a figure of the order of 1.6% of GDP next year, either due to savings in energy consumption people or by updating rates.
The transport subsidy will also be reduced by 0.1 of GDP, which will remain at 0.4% as compensation for inter-jurisdictional groups.
Another main aspect is to keep the exchange rate updated Therefore, 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, the sources specified.
Also, an increase in exports is expected, of 7.1%, against imports that would increase next year 2%. In this way, the trade surplus would go from US$7.7 billion this year to US$12.3 billion in 2023.
Another central aspect will be the possibility of laundering dollars for the payment of imports of supplies and services destined for productive processes, and for the construction of real estate projects as well as for the acquisition of used homes.
Article 71 establishes an amendment to Law 27,679 on money laundering for construction, in order to incorporate in that regulation a permit for the “acquisition of a used property that is affected: i) with exclusive destination to house-room of the declarant of the funds and their family, or ii) for a period of not less than ten years, to the location with exclusive destination to the house-room of the tenant and his family”.
In other words, with this modification, the funds declared under the current money laundering regime for construction are also allowed to be used for the purchase of used homes.
In the fundamentals, the ruling party points out that the “budget that is presented tends to macroeconomic stability, to the recomposition of the purchasing power of income and to the strengthening of the internal market”, among other issues.
