Expenses accrued from the National Public Administration (APN) were in October of $ 1,369 billion, with a nominal interannual increase of 44%the fourth consecutive month in which they registered a fall in real terms, according to the report released today by the Scalabrini Ortiz Center for Economic and Social Studies (CESO).
“In case of verifying the inflation of 6.5% foreseen by the REM (Survey of Market Expectations, disseminated by the Central Bank) for October, the reduction in spending in real terms would reach 23.5%,” said the entity.
The official information on the public accounts for October will be released by the Ministry of Economy on Tuesday, November 22.
In the classification by purpose, the only one of the five that had an increase higher than the projected inflation was defense and security services (89%), while social services (57%), government administration (42%) and economic services (26%, includes subsidies and transfers to companies, economic sectors and trust funds) showed a lower increase, while public debt registered a 32% drop.
In the accumulated of the first ten months of 2022, accrued expense amounted to $12.985 billion, with a nominal rise of 63%.
In this regard, the CESO highlighted that “the accumulated expense already shows a negative real variation for the first time in the year” with a fall of 2.7% compared to the same period of 2021 at constant values.
The average execution level is 78.5%, with the Ministries of Security (85.5%) and Social Development (83.9%) heading the list, although “it should be taken into account that the Security budget was recently reduced and that of Social Development increased”, warned the entity led by Andrés Asiaín.
Between January and October, energy subsidies reached $1.253 billionwith a contraction starting in July.
the CESO considers “an unknown” if that drop in the second semester “can be sustained for the rest of the year” since “it is likely that Cammesa (Administrator Company of the Electricity Wholesale Market) is accumulating debts with generating companies that are not accounted for as floating Treasury debt or as accrued transfers.”
The last month, energy subsidies increased 32% in nominal terms, totaling $109,255 million, with the main recipients focused on Cammesa ($ 94,968 million) and the Gas Plan ($ 13,750 million).
What is assigned to capital investment totals $1.4 billion, 8.8% of the total, while in October it was 44% higher than that of the same month last year.
Regarding social programs, The Food Card had an expense executed up to October of $256,374 million, 53.9% higher than the same period in 2021 and the Empower Work $346,414 million, 126% higher than the same period last year.
15.5% of budgeted items are identified as having a positive impact on reducing gender gaps, that so far this year totaled $ 2,188 billion, 16.8% of the total.
Finally, the CESO indicated that “In all of 2022, $141,396 million were allocated as transport subsidies to the provinces (mainly concentrated in the AMBA), 83% more than in 2021” and that in the distribution of ATN (National Treasury Contributions) the main recipient was the province of Buenos Aires, with 13% of the total, followed a short distance by La Rioja, with 12.5%.
