Wednesday, September 28

Confirmed: primary deficit was 3% of GDP last year

“This dynamic is due to a real increase in total income of (17.6% real year-on-year) simultaneously with an expansionary fiscal policy (0.8% real year-on-year; 12.9% real net of covid spending) that guarantees economic growth with social inclusion while advancing in the sustainability of public finances”, stated Economy.

Days ago, the Minister of Economy, Martín Guzmán, assured that “there is practically an agreement” with the International Monetary Fund “on where to converge, what is the primary fiscal result” and that “the difference is in the speeds and that has to do with the fact that they are looking at different objectives”. The IMF asks for an accelerated adjustment.

In December, for its part, the primary fiscal deficit was $496,344 million. In the reference period, the total Income of the SPN amounted to $879,209 million (+87.3%). Tax revenue grew 86.5% year-on-year, driven by taxes from foreign trade, social security and economic activity. Retentions continued to register a significant increase (209% year-on-year).

For its part, primary spending grew 77% year-on-year in December, while capital investment (public works) climbed 134.2% against a low comparison base for 2020.