Sector Público (ingles) archivos - Page 3 of 13

Sector Público (ingles)

THE PENSION SYSTEM POSES MORE CHALLENGES THAN THE LELIQ

The enormous accumulation of liabilities in the Central Bank is a major constraint to lower inflation. But even more restrictive is the fact that, if inflation is lowered, pension expenditure automatically will rise. This cannot be solved by manipulating pension indexing but through a comprehensive reorganization of the system. (more…)

The drama in Chaco originates in Bueno Aires

This is not the first time that an abuse of power occurs in a northern province. As it happened in the past, the indignation is channeled against the local leadership. But the causes of the institutional degradation are the incentives generated by the co-participation and the national transfers to provinces. (more…)

Coparticipation can not be fixed

The Census shows that the provinces that benefit the most from co-participation have the worst infrastructure. The reason is that the money is used more for clientelism than for development. That is why co-participation must be eliminated. Each province should be self-financed. (more…)

Is “Plan Llegar II” coming?

Before or after the change of government, the “Plan Arrive” (Plan Llegar) will end with a large devaluation. It is not so important what the current government does, as what the new government decides to do. Especially, it does not postpone the ordering of the State with the excuse of having to get to the 2025 elections. (more…)

If inflation falls, the provinces go back to fiscal deficit

The federal government’s fiscal imbalance contrasts with the provinces’ surpluses. This is so because the provinces used inflation to reduce the real value of expenses. If a drop in inflation is simulated, the provinces return to a deficit. For this reason, it is imperative to have a comprehensive reorganization of the three levels of the State. (more…)

Dollarization does not remedy the chronic fiscal deficit

The growing concern for the acceleration of inflation increases adhesions to proposals aimed at recovering stability. Dollarization appears among the most attractive. However, the change of monetary regime is doomed to failure without an integral ordering of the State. (more…)

More is spent on Leliq interest than on pensions

A third version of the dollar-soy was implemented. This will accelerate money printing, which the Central Bank will try to absorb by increasing the issuance of Leliqs. The Central Bank already spends more on Leliq interest than the social security agency in paying pensions. (more…)

The solution is no the fiscal adjustment but the state’s reorganization

The fiscal deficit jumped sharply in January. It is the consequence of delayed payments in December to show a decrease in the deficit in 2022. Another evidence that the fiscal adjustment cannot fix the financial and management deficits caused by the Argentine State’s deficient organization. (more…)

Provinces show that fiscal surplus is not enough

In the face of the national fiscal disaster, the performance of the provinces is taken as a model to follow. However, the low quality of provincial public services shows that fiscal adjustment is not enough. It is necessary to put an end to financial and management deficits through a comprehensive reorganization of the State. (more…)

The fiscal deficit has been reduced thanks to inflation

The government shows satisfaction with the fiscal deficit reduction and concern for the increasing inflation. This is an incongruence since it is thanks to inflation that the fiscal deficit fell. More worrying is that the opposition party does not come up with any better ideas regarding the use of inflation to adjust the public finances. (more…)