Approved the city budget for 2019: the ABL will increase on average by 34% – 29/11/2018

In 2019, the ABL will increase by 34% on average in the citywith a ceiling of 38%. There will be discounts for those who pay by automatic debit for both this rate and the patents. And gross income cuts for industries and for construction will continue. Meanwhile, the public works in progress will not stop, but new projects will not start. The total income of the Buenos Aires Treasury for next year will be $ 321,457 million.

These are the outlines of the 2019 Finance Law, approved this Thursday in the Legislative Assembly of Buenos Aires with 34 votes in favor, 16 against and 9 abstentions.

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"For the second year in a row, the city is presenting a fiscally balanced, deficit-free budget with strong social investment, which reflects a responsible government in managing neighbors' resources," said Francisco Quintana. first vice-president of the legislature of Buenos Aires.

The rise of the ABL will be done with the same regime as that applied since 2011, when 50 of the 60 legislators of that time approved a law to update it and tax badessments do not fall behind the real market value of real estate.

For next year, the Government of Buenos Aires will apply the following categories:

– 30% of the register, or about 573,000 items, will see an increase less than $ 100 in each monthly fee.

– 35%, or 669,000 tickets, will arrive with increases of between $ 100 and $ 150 a month.

– 20% will have to deal with increases in between $ 150 and $ 450 monthly

– 10%, about 190,000 items, will remain exempt (retired, disabled and others).

With this increase, the ABL will raise $ 22,751 million, or 7.7% of the total resources of Buenos Aires.

In addition, there will be more discounts for compliant taxpayers. For those who are not behind in any quota, the withdrawal will remain 10%, but they pay by automatic debit the last installment will be saved, which equates to another 8.33% discount. Similarly, for those who pay all year at once, at the usual 15% discount, an additional 5% will be added.

A similar system will be used for patent fees: those who pay through their bank will benefit from a 10% reduction for compliance and they will not pay half of the last payment, which is in this case bimonthly.

The rate that the City imposes on motor vehicle owners will also increase, but not because of an increase in rates, but because of the rising value of vehicles due to inflation. What is paid for the patents is equivalent to 3.2% per year (divided into six installments) of the price of the car, as defined by the insurance companies. In the city, the rise in this rate it will be 25%.

At the same time, for the second year in a row, gross income reductions will continue to focus on certain business activities, as part of the 2017 Financial Responsibility Act by the city, the nation and other provinces. This is the main tax of the local treasury, which represents 54% of the collection. The new aliquots will be as follows:

– For the industry, it will decrease from 2% to 1.5%.

– For transport and communications, from 5% to 4.5%.

– For construction, from 3% to 2.5%.

Also result of the negotiation of the Nation and the provinces to reduce the fiscal deficit, from 2019 the City must support grants that until now covers the federal state. The Nation will transfer control of 33 bus lines (those that run only through Buenos Aires lands) to the city government, which will have to cover ticket subsidies for $ 4,100 million. In the same way, you will have to pay the social rate of users of electric power ($ 700 million) and water users ($ 380 million). In addition, the city will no longer have the $ 870 million that would have been affected next year if the contribution of the so-called "Sojero Fund" was maintained.

On the expenditure side, there will also be changes. Product of the economic situation that crosses the country, the government of Buenos Aires decided finish all work in progress, but do not start new projects. Yes, they will support maintenance expenses, for example with an investment of more than $ 2,200 million for sidewalk repairs and $ 1,900 million for pavement and repair work.

Part of the change is the need to keep social spending in a worse economic position and to cover these new subsidies to the city. "One of the pillars of the budget is investment in areas such as Health, Education and Social Development, which reach 51% of the total. Funding is also provided for the completion of works such as the Paseo del Bajo and the Miter and San Martín Viaducts, "said Finance Minister Martín Mura.

Of the planned investments in infrastructure, those with the most funding will be housing, with $ 11,243 million, of which continue the plan of urbanization of the villa 31.

Improvements to the subway system, between the installation of air conditioning and the opening of three stations of line E, will require $ 4,033 million. The security zone will also have a large budget of nearly $ 4 billion.