Saturday , May 8 2021

The city approved the 2019 budget: zero deficiency, an increase in ABL and fewer investments in deeds

Buenos Aires officially approved this Thursday without fear, given its own majority, the 2019 Budget and the ticket bill. The regulatory package provides for an increase in costs by 26%, zero deficit, total social investment of 51%, inflation of 23% and an average increase of ABL of 34%.

After a debate that lasted nearly three hours and was advanced because of the G20, the project had only the project 34 affirmative votes from the block Vmamos Yuntos. Both Kirghizia, the Perroni bloc and the left parties voted against. Evolution, the Gene and the Socialist Party have decided to abstain.

Legislator Paula Villalba, Chairman of the Budget Committee, was the first to withdraw and stressed that it was a budgetary "in line with the zero deficit and maintenance of fiscal balance for the second consecutive year ". He also explained that "we will continue with the plan to reduce the gross income tax, the most violent of the fiscal structure of the city," within the fiscal policy agreed with the national government.

According to the text of the law, the total cost will be 321.457 million dollars, 26% more than in 2018. Some $ 315 billion will be funded from current resources (98%) and $ 6,480 million from capital resources (2%). It is also calculated and primary surplus – without interest on debt – from 25.815 million dollars.

On Debt payments will increase by 30% and will reach 8% of the total cost. However, no new borrowing is foreseen.

"This budget gives account of a responsible government in the management of the neighbors' resources," explained Francisco Quintana. In addition, the ruling party insisted 51% of the objects will be used for social investments.

The main criticism of the opposition focused on projections that are made for the following year: according to the national budget, the new Buenos Aires law estimates that inflation will be 23 percent, that the dollar will be quoted at an average of $ 40.10 and that the fall the product will be 0.5%. It should be noted that, according to the IMF, the fall of the Argentine product next year will be 1.6% and that the dollar, after rising this week, is already about 39 dollars.

The president of the assembly of Unidad Ciudadana, Carlos Tomada, assured that "the cutting criterion has a seal of Change, because they always fit into the same sectors"And he said that education and health in 2007 accounted for 51% of the costs, while" today they represent 35%. "He also said that in 2007 debt payment does not exceed 1.5% of the budget, while in 2019 reaches 8%.

In the same line, the legislator of evolution, Juan Nosilia, who said that "in 2008, educational investment represented 26.6%, while by 2019 it is projected to represent only 17.3%, losing almost 10% of the total."

In return, Sergio Abrevaya, to the Gene, added to the criticism of the "difficulty estimates" and clarified that reducing the real costs of education and health are sufficient reasons not to accompany the law.

Patricio del Corro, from the left front, calculated that "what happens in the interest of debt, 23 hospitals could be built in a year" and that "more will be spent on building police stations ($ 1,400 million) than in school infrastructure ".

It is important to bear in mind that as a result of an agreement with the national government, within the framework of the austerity plan agreed with the IMF, the City will assume from 2019 the transfer of subsidies for collective transport ($ 4,100 million), social water rate (Aysa, for $ 380 million) and electricity ($ 700 million). The transfer of these subsidies plus the removal of the "federal fund" will amount to $ 6.05 billion.

Other moments from the 2019 budget

-Yes ABL It will increase by an average of 34% (with a maximum of 38%). 65% of Buenos Aires residents will receive an increase of $ 150 per month. There will be discounts on time and with automatic indebtedness. This tax will collect $ 22,751 million.

-Taxing tax on Gross income. Reduction of aliquots will occur in the sectors of the manufacturing industry (from 2% to 1.5%), transport and communications (from 5% to 4.5%) and construction (from 3% to 2.5%).

– Budget of Education will increase by 30% to $ 57,405 million. While the area of Culture it will have an increase of 45%, with an estimated $ 6.258 million.

– Means intended for Health they will grow 30.4% ($ 49,300 million) and investment in promotion and social action 34.5% ($ 31,483 million).

– Budget of Security it will amount to $ 46,500 million (+ 37%), an average of $ 15,000 per capita (twice as much as Buenos Aires province). It includes $ 4.1 billion for the construction of new police stations, maintenance, equipment and vehicle procurement.

– It will go $ 51.640 million investment in infrastructure, 16.3% of the budget. With these resources, which fall by 4% compared to 2018, new things will not be opened, but the completion of those in progress will be guaranteed. More than $ 4,033 million will go to the underground network and $ 5,150 million will go to the urbanization district 31 and build a new building at the Ministry of Education.

-Sets a salary increase as well as inflation (23%) for municipal administration workers.

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