April 19, 2014
Compared to surplus last yearFriday, December 13, 2013
Primary deficit of 2.758 billion in Oct.
Argentina posted a primary budget deficit of 2.758 billion pesos for October, the Economy Ministry said yesterday, adding that the financial result including debt repayments was a negative 7.280 billion pesos for the month.
Economist Marina Dal Poggetto, from Estudio Bein, said the negative result in October resulted from an increase in public spending largely as a result of the midterm elections.
The latest figures mark a reversal from last year, when October saw a primary budget surplus of 660.5 million pesos. The overall financial result in October of last year, including debt repayments, was a negative 4.05 billion pesos.
The October results breaks the trend of having a primary budget surplus seen this year. In the first 10 months of 2013, the budget surplus was 4.097 billion pesos.
Nonetheless, the government’s overall fiscal balance, including debt repayments, for the year up to October is a deficit of 29.386 billion pesos.
Capital resources in October were 2 million pesos, while capital expenditures totalled 10.192 billion pesos, leading to a negative balance of 10.29 billion, which, when the 2.91 billion of revenue is added, results in 7.279.9 billion of fiscal deficit.
“The current account revenue increased 31.9 percent year-on-year,” the Treasury said eysterday, adding that “this increase is due mainly due to the revenue due to Social Security contributions,” which incrased 28.8 percent.
Meanwhile, tax revenue increased 19.9 percent year-on-year, with the value-added tax rising 31.4 percent.
Herald with Reuters, DyN