Sector Público (ingles) archivos - Page 2 of 13

Sector Público (ingles)

UNPARALLELED OPPORTUNITY TO REPLACE THE CO-PARTICIPATION

The income tax reduction impacts the provinces’ tax revenues. Instead of discussing compensations, this is the opportunity to reach a tax and functional coordination agreement including the distribution of tax sources and the replacement of co-participation by a Convergence Fund. (more…)

THE PENSIONS SYSTEM DOES NOT NEED ADJUSTMENT BUT ORDERING

The institutional mechanism that most compromises the functioning of modern societies is the pension system. As they are life-long rights, decisions made in the past generate fiscal commitments in the present. Pension system’s ordering today can improve future results. (more…)

THE INDEC REFLECTS ONLY A PART OF INFLATION

The inflation measured by the official agency does not reflect the increases repressed behind the price controls and the monetary emission contained by the Central Bank’s leliqs. The release of these containments will be very traumatic if it is not accompanied by a comprehensive reorganization of the State. (more…)

FISCAL CORRESPONDENCE INSTEAD OF TAX CO-PARTICIPATION

While some provinces file lawsuits before the Court questioning the co-participation, others warn that, if it were eliminated, they would not be able to pay the salaries of public employees. Co-participation cannot be fixed. It is necessary to adopt the rule of fiscal correspondence: the one who spends must collect tax. (more…)

PENSIONS PLUMMETED 32% IN THE LAST 6 YEARS

The macroeconomic disaster would be much worse if it were not for the fall in pension expenditure thanks to the drop in the real value of pensions caused by the high inflation. It is essential to organize the pension system instead of trying to freeze this situation by manipulating the pension indexing rule. (more…)

TAX EXEMPTION ARE A DERIVED OF THE TAX DISORDER

The national government sent to Congress a separate part of the Budget which lists tax exemptions that were not historically identified and proposes their elimination to facilitate reaching the fiscal surplus. This is another example of improvisation and opportunism in public policy management. (more…)

CHANGES IN INCOME TAX SHOW THAT THERE IS NO “RIFT” ON BAD IDEAS

In modern countries, income tax is a central source of State revenue. In Argentina –with the support of the right, the left, and the center– the Congress is preparing to practically eliminate it. One more proof that the problem in Argentina is not the “rift” but the lack of professionalism and demagogy. (more…)

LOWERING INFLATION MEANS THAT THE PENSION SYSTEM MUST BE ORDERED

The 2024 Budget presents implausible numbers. Even so, its calculations show that, when inflation goes down, pension expenditure goes up, making it difficult to achieve fiscal balance. This dilemma will not be solved by manipulating mobility again, but by putting the pension system in order. (more…)

THE FEDERAL REGIMEN MUST BE PUT IN ORDER

Milei proposed to review the co-participation regime. Several governors rejected the idea, including the threat of resignation if the proposal becomes a reality. The evidence shows that, in order to get out of Argentina’s decadence, the ordering of the federal regime must not be postponed. (more…)

DEVALUING BADLY IS WORSE THAN NOT DEVALUING AT ALL

Devaluation is a painful remedy with no guarantee of success. Accompanying it with improvised and opportunistic measures led to a jump in inflation and the loss of government authority. The objective of improving the real exchange rate was not achieved and the risks of further inflationary acceleration increased. (more…)