The Chamber of Deputies will approve this week the Budget project 2023, with the support of the legislators of the ruling party and provincial blocs.
The initiative features a search for fiscal deficit reduction and, at the same time, it contemplates most of its resources for social expenses.
One of the points incorporated by the ruling party in recent days to the project sent by the Executive is the elimination of the exemption in the payment of income tax for judges, officials and employees of the Judicial Branchwhich would add $237,000 million to public coffers.
The spending and resources law will be discussed in a special session requested by the Frente de Todos (FdT) bloc starting at noon on Tuesday and it is estimated that the discussion of it -composed of 143 articles- will require around 22 hours of debate .
Support
The ruling party is already guaranteed approval because it has 117 legislators from the FdT, 8 from the Federal Interbloc, 4 from the United Provinces, 1 from the Neuquén Popular Movement, and hope to add two from the Serwith which he is assured of more than 130 votes.
To this could be added the bulk of Together for Change, that it will discuss this Monday if they vote in general, as proposed by the UCR and Radical Evolution; or if they abstain, as the majority of the Pro and the Civic Coalition prefer, although initially the latter’s idea is to speak out against it.
The decision will be made after analyzing some changes that are being introduced in the opinion during this weekend, according to opposition parliamentary sources told Télam.
One of the changes was to eliminate the possibility of charging an extra 15 percent in the amount paid by registered workers who have prepaid social securityan issue that was considered in the previous days.
modifications
The treatment of the Budget will arrive at the Lower House after having had a round of consultations in which nine ministers and more than 20 officials from the Executive Power participated, and after four days of analysis by the legislators where around 30 changes were introduced with respect to the original project.
The changes were agreed upon by the Economy Minister, Sergio Massa; the president of the body, Cecilia Moreau; the head of the FdT caucus, Germán Martínez; the parliamentary secretary of the bloc and member of La Cámpora, Paula Pennaca; the economic team and the official national senators.
In any case, the project designed by the Ministry of Economy maintains all the macroeconomic variables -which are the heart of the text-: it foresees a growth of the economy of 2% in 2023, an average dollar of 219 pesos, a decrease in the fiscal deficit from 2.5 to 1.9% and an inflationary guideline of 60%.
The project estimates a total expenditure of nearly $29 billionwith an approximate collection of $22.5 billion and a primary deficit of $6.3 billion.
One of the topics that monopolized the debate in recent weeks -which was led by the president of the Budget Commission, Carlos Heller- was the forecasts on the increase in prices for the current year, since until September it has accumulated a rise of 66 .1% and in the last twelve months it has risen to 83%, with which the opposition believes that it will not be possible to meet the 90% objective set in the initiative.
For this reason, and at the request of JxC, a clause was included by which if the collection or the expected inflation of 60% increases in 2023, a correction must be implemented in the Budget, in order to establish how that surplus will be redistributed. of the resources.
In this sense, it establishes that if “As of August 31, the inflation rate exceeds the 10% goal established in the Budget or income exceeds 10%, the Executive Power will send a complementary law.”
The initiative also establishes that the Budget cannot be expanded by decree.
Another point that was incorporated into the project promoted by the ruling party, and that has been generating debate for more than 20 years, is the exemption in the payment of income tax that judges, officials and employees of the Judicial Power have.
Regarding the debate on the initiative, the Mendoza deputy Lisandro Nieri told Télam: “I appreciate that they can have the Budget, even if they do not share the same one where they make the adjustment: health, disability, childhood, promotion of renewables, universities.”
From the FdT, the deputy of Patria Grande Itaí Hagman highlighted that “since the 2023 Budget project arrived, we have dedicated many hours to its analysis and discussion with other deputies and also within our bloc. Thanks to this collective work we have achieved important modifications in sensitive games”
Hagman, through his account on the social network Twitter, said that “We have achieved a budget that does not save on any policy linked to guaranteeing fundamental rights. Having said this, I want to say that solving the serious problems that the Argentine economy has does not depend only on this discussion.”
Since the 2023 budget project arrived, we have dedicated many hours to its analysis and discussion with other deputies and also within our bloc. Thanks to this collective work we achieved important modifications in sensitive items. Story in this thread ??
— Itai Hagman (@ItaiHagman) October 21, 2022
He pointed out that it depends “mainly on macroeconomic policy and the battles we have to fight to lower inflation, restore workers’ income, protect the most vulnerable and avoid abuse and pressure from the powerful. That is the central debate that You have to give”.
In addition to the changes on the inflationary pattern and the end of the exemption of Profits in justice, the majority opinion incorporated more than thirty modifications that were proposed crosswise by deputies of the ruling party and the opposition, among which were the question of the subsidies to the transport of passengers of the interior of the country, the possibility of deducting educational expenses from Earnings and an increase in items of social programs, among other issues.
As for passenger transport, the ruling establishes that the compensation fund is extended and rises from $66,000 million to $85,000 million as a floor, but establishes the obligation to have the Sube to control subsidies by jurisdiction.
Regarding Cammesa, the provinces will have to control the payment of their providers to the wholesale market and will have six months to agree on how the debts will be paid, which can be made in up to 96 installments.
As for the funds allocated to education, 12 million will be increased for school canteens; 4,149 for equipment, about 59,000 in Progress Scholarships, for the National Teacher Incentive Fund for $31,175 million, with which the total education budget will amount to $1,848,888 million pesos.
On social spending Heller announced an increase in food benefits of $101 million, family allowances of $90 billion, $19.7 billion to the Socio-Urban Integration Fund, and another $4,000 for children’s rights.
Other items included are for La Rioja $47,000 million to be distributed between the province and the municipalities that will be transferred in 12 equal installments.
Another point is that an article on the regularization of tax and social security debts is reformed until October 2022 throughout the country, which will include the forgiveness of capital and interest.
Internal taxes on electronic products made in Tierra del Fuego were also modified so that they rise from 6.5% to 10%, while the tax for those imported will rise to 19%.
Another point that remains to be defined was the request of the Misiones deputy Diego Sartori for the incorporation of that province in the so-called “Special Customs Zone”.
