Budget 2021: what are its main points | the Chronicle

The Senate on Thursday evening approved the budget for 2021 with the vote of the ruling party and the divided opposition, in an extraordinary session, in which it was resolved to send the bill to the House of deputies, for final ratification, due to an omission of forms, due to a system error, on public works for the provinces.

In the final vote, The text with the calculation of expenses and the amounts of recovery foreseen by the executive power for the next year was approved by 45 votes of the Frente de Todos and the divided vote of Ensemble for the change, of which 23 members abstained, three voted for in general and against certain articles and two voted against.

The Chamber of Senators discusses the project envisaging a growth of the gross domestic product (GDP) of Argentina of 5.5%, an inflation of 29%, a global expenditure of eight trillion pesos and a deficit of 4.5 percent .

What are the main points of the law?

• The initiative maintains a total expenditure estimated at 8.3 billion pesos, of which 7.5 billion corresponds to current expenditure; while it contains an estimated deficit for 2021 of 4.5% of gross domestic product and projects an economy growth of 5.5% of GDP.
• While the payment of interest on the debt will be reduced from 3.5 to 1.5% of the proceeds, capital expenditure is expected to 2.2% of the GDP, which is doubled compared to the 2019 budget.
• Inflation for the whole of 2021 is estimated to be around 29% and that the price of the official dollar, in December of next year, will be 102 pesos.
• The project also estimates that exports will increase by 10.2% and there will be an increase in imports of 20.4%, with a trade surplus of approximately US $ 15,087 million.
• Private consumption will increase by 5.5%; while public consumption will increase by 2%.

• It is planned to allocate more than 5 billion dollars to social spending, with an increase of around 60% compared to the previous period; while spending on gender policies will represent 15% of GDP.
• Subsidies for inland passenger transport will be 20,500 million pesos and for the metropolitan area 65,000 million pesos.
• There is also an increase in the tax rate on bets or games of chance made through any digital platform, which will be 5%. During this time, the aliquot will become 15% if a person residing abroad intervenes.
• The provinces are authorized to install customs in any of the 19 border points of Argentina, the location of which will be defined between the administrations and the seat of the National Cabinet.
• 12,540 million pesos will be allocated to the province of La Rioja in compensation for the joint participation, of which 460 million will go to municipalities.
• A compulsory contribution of three per thousand (3 ‰) of insurance premiums with the exception of those of the life branch is established, payable by insurers, which will be intended for the National Fire Fighting Fund.

• The Tobacco Fund will be transferred to producing provinces on a monthly basis. Banco de la Nación Argentina will not receive any remuneration of any kind for the services it provides in accordance with this Agreement.
• The Trust Fund for the Promotion of the Knowledge Economy, FONPEC, will be allocated 230 million pesos and a tax quota of 24,000 million pesos.
• The national state will accept payment to the provinces of Santa Fe and La Pampa for the judgments of the Supreme Court for debt of co-participation.
• 700 million will be allocated to the Under-Secretary for the productive and sustainable strengthening of small and medium agrifood producers.
• 823 million pesos will come from conventional and Paralympic sports scholarships that the athletes of national representation will receive between the months of January 2021 and August 2021.