The CEPA Center published a report detailing significant real cuts in public spending and sensitive items during November. The total public sector spending reached 9.27 trillion pesos, implying a real year-on-year drop of 14.2%. According to the Argentine News Agency, the report highlights that compared to the same month in 2023, the cut amounts to 35.2%, and accumulated for the year, the reduction reaches 28.3%.
Social Benefits: Sharp Cuts Social benefits decreased by 10.6% year-on-year and 19.8% compared to November 2023. The largest decreases compared to 2023 were recorded in: - Family allowances: -17.5% - INSSJP benefits: -44.6% - Non-contributory pensions: -16.8% - "Other programs": -79.8%
CEPA warns that if November 2024 spending levels had been maintained, these last two items would have meant an additional 0.96 trillion pesos.
Contributory Pensions and Benefits Contributory benefits recorded a year-on-year increase of 5.5% and 9.4% compared to November 2023. However, for the year-to-date, there is a real decrease of 6.3% compared to the same period in 2023.
National Universities: Near-total Collapse in Spending The report indicates real reductions of 95.5% compared to November 2024 and 96.7% compared to 2023. The agency estimates that if the previous level had been maintained, additional spending would have been 0.39 trillion pesos. It is also recalled that the University Financing Law, which updated university budgets to adjust academic and non-academic staff salaries, has been suspended.
Subsidies and Public Works Fall Economic subsidies decreased by 25.8% in real terms year-on-year, while those for transport fell by 47.8%, mainly due to the discontinuation of tariff compensations in the AMBA area via SUBE. The "Other functions" subcategory suffered a 97% drop. On the other hand, capital expenditure and public works recorded a real year-on-year decrease of 32.5%, and an 84.6% drop compared to the same month in 2023.
For the year-to-date, the drop in public investment amounts to 80.6% compared to the same period in 2023, which "evidences that there is no recovery," CEPA emphasizes.
