The Chamber of Deputies will open this Wednesday in committee the discussion of the Budget 2023 with the formal presentation that will be made by the Minister of Economy, Sergio Massa, who will explain the macroeconomic variables projected by the Government of a 2 percent increase in GDP growth, a deficit of 1.9 percent and average inflation of 60 percent. hundred.
will be the first Budget that is treated in the management of Massawho will seek with his conciliatory style to reach agreements with the parliamentary blocs so that this year the law of expenses and resources is approved, after it was rejected last year.
A distinctive fact that the debate will have will be that, in addition to the secretaries of the Ministry of Economy, most of the ministers and officials from strategic areas of the AFIP, Anses, Customs and the president of the Central Bank, Miguel Pesce, as requested Together for Change.
The Frente de Todos bloc – chaired by Germán Martínez – is confident that Massa’s political profile will make it possible to reach agreements with the provincial blocs and the radicals that manage governments such as Jujuy, Mendoza or Corrientes, to sanction that project on October 26.
The ruling party must build consensus with opposition blocs since it is the first minority and has 117 votes, which requires at least a dozen votes to ensure a majority to approve this strategic initiative in general and in particular.
The agenda
The treatment scheme for the main law of the year it was agreed last Tuesday in a meeting headed by the president of the Chamber of Deputies, Cecilia Moreau, with the parliamentary blocs of the ruling party and the opposition.
?» I met with the heads of all the blocks and with the authorities of the Budget Commission to plan how it will be debated in @DiputadosAR the General Budget Law of the National Administration for Fiscal Year 2023. pic.twitter.com/s5IgfjYDOi
— Cecilia Moreau (@ceciliamoreauok) September 20, 2022
For now, the debate on the law of expenses and resources will begin in the budget committee -headed by Carlos Heller- the Wednesday at 2:00 p.m. with Massa’s presentation, which he will do at a meeting to be held in the “Delia Parodi” Hall.
There he will explain the central data of the Budget project that contemplates a total expenditure of almost 29 billion pesos, a growth of the economy of 2 percent, an average inflation of 60 percent, and reducing the fiscal deficit from 2.5 to 1 .9%.
A distinctive fact is that more than 65 percent of the funds will be allocated to social expenses, including the payment of the different assistance plans, as well as retirement and pensions.
After Massa’s presentation, that same day at 4:00 p.m., the legislators will move to Annex C where all the secretaries of the Ministry of Economy will present and answer questions from the legislators of the ruling party and the opposition.
They are the Secretaries of the Treasury, Raúl Rigo; Finance, Eduardo Setti; of Industry and Productive Development, José de Mendiguren; of Agriculture, Juan José Bahillo; and Energy, Flavia Royon.
In case all the secretaries cannot complete their reports, they will go to an intermediate room until Thursday to complete the presentations of the officials of the Treasury Palace.
On that same day, it is also planned that the AFIP holders, Carlos Castagneto; of Customs, Guillermo Michel, and of Anses, Fernanda Raverta, and possibly that day or the following week the president of the Central Bank, according to parliamentary sources.
The turn of the members of the National Cabinet will be on Tuesday, October 4, and the Ministers of Labor, Claudio Moroni; of Transportation, Alexis Guerrera; and from Public Works, Gabriel Katopodis, from Health, Carla Vizziotti, from Education, Jaime Perczyk, and from Social Development, Juan Zabaleta.
In the event that the ministers cannot conclude their reports, they will do so on Thursday, October 6, which will be the last meeting of the round of consultations, according to the scheme drawn up by the ruling party.
The debate
The debate between the pro-government and opposition legislators will begin on Tuesday the 11th and will last until at least Monday the 24th. when the majority opinion will be signed, and there the Front of All will seek to have closed the agreements that guarantee sanctioning the Budget as happened when the extension of taxes that expire at the end of the year was voted.
On that occasion, the FDT obtained 129 votes with the support of 116 of its own votes, four from the United Provinces, eight from the Federal Interbloc and 1 from the Neuquén Popular Movement.
An issue that will be the central debate of the Budget discussion will be the projection of inflation and the reduction of the fiscal deficit from 2.5 to 1.9 percent.
In order to achieve this objective, it is estimated that there will be a decrease of 0.6% of the GDP in what is earmarked specifically for the energy sector, which in this way will remain at a figure of the order of 1.6% of the GDP next year, either by savings in people’s consumption 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 interjurisdictional groups.
The budget includes a increase in exports of 7.1% against imports that would increase next year 2%, and in this way, the trade surplus it 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 of dollars for the payment of imports of supplies and services for production 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.
