The Government made official this Thursday a new budget modification to reinforce spending with a reallocation of funds. The objective is to face months of higher expenditures where the salaries of the public sector weigh, the bonus and other needs, such as the purchase of fighter planes, the reversal of the northern gas pipeline and food assistance.
The review is the fourth since the assumption of Javier Milei and the first signed jointly by the new Chief of Staff Guillermo Francos and the Minister of Economy, Luis Caputo, after the crisis that ended with the departure of Nicolas Posse. The Secretary of the Treasury, Carlos Gubermanalready raised last week the expansion of games of 10 ministries and the Legislative Branch.
According to the document of 333 forms, administrative decision 470/2024 authorizes an increase in the calculation of resources for $123,270 million and an increase in expenses for $274,690 million. As a result, the financial balance of the national public administration budget has a deterioration of $151,420 million.
He The main change is the reinforcement of $184,172 million to face “salary increases” in the public sector, where 322,250 employees work. The measure includes the distribution of positions and teaching hours and the complementary annual salary that is collected with the July salary. “The necessary adjustments will be made, “The payment of the half bonus is not in danger.”Economy sources indicated.
As Javier Milei’s management maintains the 2023 budget, the items are quickly becoming outdated. Thus, according to data from the Congressional Budget Office (CPO), until April 40% of the current credit of $54 billion has already been executedwhich is now expanded with new expenses financed with Treasury resources, internal transfers and external loans.
The Government has funds from the strong adjustment in spending and collection. Although greater income from the harvest is expected in June and July, the Executive seeks to cover a possible “operating deficit” with the accumulated financial surplus of $ 1.5 billion until April. In particular, to “compensate” the bonus and the increase in items for Cammesa, as Milei acknowledged.
Gas supply came to the fore last week with cuts in industries and CNG stations. In this framework, the Ministry of Economy increased transfers by $ 147,997 million to meet the current expenses of Energía Argentina (Enarsa). The company that the government seeks to privatize The purchase of 20 boats is pending LNG and gas from Bolivia.
Funds for the northern gas pipeline
The Ministry of Energy, meanwhile, will have an increase of $58,406 million for the reversal of the northern gas pipeline, a complementary work to the Néstor Kirchner gas pipeline that is financed with a loan of US$ 540 million from the CAF.
After complaints about the stockpiling of perishable food, the Ministry of Human Capital will receive an increase of $65,021 million to cover payment until July of the Feed Cardwhich in June amounted to $52,000 for a family with one child.
$24,200 million are also incorporated for the payment of basic ANSES services and $20,000 million to cover the increase in unemployment insurance after the increase in the minimum, vital and mobile wage in April and May.
Within the Ministry of Health, an increase of more than $100,000 million is contemplated for vaccines and medicines and $25,000 million for social aid to individuals and family allowances.
The Ministry of Defense will reallocate external credits to increase the Air Force budget by $32.67 billionto incorporate 24 F16 aircraft which the government bought from Denmark for US$300 million, and the Army will add $9,787 million to pay food suppliers.
On the other hand, the Legal and Technical Secretariat of the Presidency of the Nation will see its credits reduced to reinforce current expenses by $ 194,953 million for registration, digitization and information management services.
In the Chief of Staff, the transfer of positions from the then Ministry of Infrastructure is contemplated and resources of $ 7,953 million are appropriated for expenses of Strategic Affairs, Open Government and Digital Country, through external credits.
The budget is also increased by $8,233 million for the payment of scholarships and social work in June to Conicet and another $10,600 million to the National Disability Agency for pension income of up to $70,000 for non-contributory pensions in June.
Finally, there is a booster of $17,608 million for operating expenses in the Ministry of Justice and a credit of $5,600 million for the activities of the Senate.
