(FILE) Personas trabajan en la Bolsa de Comercio, este jueves, en otra jornada de grandes caídas en la Ciudad de Buenos Aires May 24, 2020(Argentina). EFE/ Juan Ignacio Roncoroni

Argentina worsens primary deficit in September to around one billion dollars

Buenos Aires, Oct 20 (EFE). – Argentina recorded a primary deficit of 380 billion pesos (about one billion dollars at the official exchange rate) in September, which means the fiscal deficit has worsened compared to the surplus of 80.6 billion pesos the country recorded in September 2022, official sources reported on Friday.

According to the Economy Ministry, Argentina recorded a fiscal deficit of 511.5 billion pesos ($1.4 billion) in the ninth month of the year, a figure 115 times higher than the result of the same month in 2022.

In September, total revenues rose 95.4% year-on-year, below primary expenditures, which rose 129.8%, but both fell in real terms against an annual inflation of 138.3%.

In the first nine months of the year, Argentina accumulated a primary budget deficit of 2.6 trillion pesos, almost three times the negative balance of the same period in 2022.

In a statement, the Argentine Ministry of Economy attributed the negative result accumulated in the first nine months to the “impact of the drought on the collection of export duties received by the State,” which it calculated at 0.7% of GDP in relation to the budgetary projections.

Economy added that “the real interannual variation of primary expenditure accumulates an interannual fall of -5.1% to the third quarter”.

There was also a “moderation in the execution of the rest of the budgeted expenses” that are not social programs, education and public investment that “managed to offset the negative impact on the primary result caused by the drop in revenues”.

According to the agreement sealed in March 2022 by Argentina and the International Monetary Fund (IMF), the South American country must reduce its primary fiscal deficit this year to the equivalent of 1.9% of GDP, from 2.4% of GDP in 2022. EFE