X-ray of economic measures announced by Macri for elections

With a recorded message, the current president announced a set of economic measures aimed at improving the situation of middle and low incomes, which saw his real income decline due to a sharp devaluation of the peso. Let's go over the measurements:

Measures for "pocket"

1. Bonus for dependent workers (formal and registered): they will not pay their personal contributions (11% of gross salary) in September and October, with a ceiling of benefit of $ 2,000 per month (reaches those with incomes below 60,000 gross pesos per month).
2. Monotributistes: They will not pay the tax component of their fees next month. They are around 1,000 pesos per person or up to 4,000 dollars in the highest categories. Valid for those who pay in time and in shape.
3. Premium for public officials, armed forces and police: $ 5,000 to bill at the end of the month.
4. Additional universal allowance per child: two additional payments of $ 1,000 by son, one in September and one in October.
5. Increase in the living wage and mobile: We do not know yet how much, they will define it with the National Council of Employment.

   I remind you that the update on the Progressing grants request since January, when the program was relaunched with the frozen grant (after 2018 with inflation of 47%). Today, this amount has already lost more than 70% of its purchasing power. Macri has announced a 40% increase.

   – Lucía Cirmi (@chimi_lco)
   August 14, 2019

   
   
   

6. Scholarships: Increase of 40% from next month, is in $ 2,520 for those applying for the initial scholarship and $ 6,440 for those who finish the race.
7. Workers' income tax: 20% increase in the non-taxable floor, $ 55,376 for a single worker and $ 70,274 for a worker with a spouse and two children. There will also be a refund of taxes already paid in the year, the amounts of which will be defined in connection with AFIP. This requires congressional approval.

   

8. Income tax for freelancers: they have a 50% discount on advances They have to pay the rest of the year.

   The small scale of these stimuli reveals the government's limited leeway in terms of resources (already extinguished debt and IMF requirements) and at the same time confirms that its vocation to solve problems of the real economy is purely election.

   – Leandro Mora Alfonsín (@lmoraalfonsin)
   August 14, 2019

   
   
   

Measures for SMEs

1. A plan will be launched from AFIP, which gives them 10 years to make up their tax debts until August 15 (also for freelancers and monotributists). They will have time to register until October.
2. The number of permanent plans that SMEs can simultaneously open increases from 6 to 10.

Measures to mitigate inflation

1. The price of gasoline and other fuels is frozen for the next 90 days.

Funding

According to the document presented by the executive, these measures will cost 40 billion pesos, but will come from budget reallocations as they seek to maintain the zero primary deficit target, in accordance with the agreement with the IMF.

Treasury sources commented on The chronicler that for example The rise in the exchange rate increases the perception of export duties. It is also badumed that, due to the devaluation effect, theIt will put the volume of exports and improve the balance of trade.

"If necessary, with the reallocation of budget items from non-priority programs", it was emphasized in detailing the measures taken.

Howeverthere is doubt that it will be the sectors that will pay for these losses because the Treasury does not finance these costs.

Points to consider

Leaving aside the financing of these policies, which is no less if we consider the protection of the IMF on our budget deficit, An important point to note is that many have limited time limits. For workers, these are premiums (not increases) and for the price of gasoline, the regulation ends in December. A gift for the next management.

It is impossible to calculate for the moment, but The actual impact of these income transfers should be compared to the inflationary shock that will take place in August after the sharp devaluation of this week's peso. In this sense, less than US $ 35 transferred to formal sector workers do not know much.

Changes beyond the electoral level are related to the increase of the non-taxable basic income (which must in any case be approved by the Congress), the increase in the number of scholarships to progress and the Increase of the minimum wage, vital and mobile. The payment plan for SMEs, long sought by the sector, also indicates how the measure will be finalized.

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