Meanwhile, in the vote in particular, a sector of the opposition voted for the negative articles 7.8 and 11, which after the nominal vote were approved by the ruling party.
The budget expansion project authorizes the Government to expand expenditures by an amount close to $ 1.9 trillion, with which the total projection of expenses for 2020 would exceed $ 7.3 trillion, with an increase of 33%.
When speaking as an informant member for the government, the head of the Budget Commission, Carlos Heller, He stressed that he assured that the Government will use “80 percent of the budget expansion” for the payment of social plans and labor programs launched to alleviate the consequences of the coronavirus pandemic.
The legislator also anticipated that a compensation fund that will be used to give continuity to the provision of the transport service of the interior of the country.
During his speech, Heller added that “the situation generated by the health pandemic produced a worsening of the economic situation, where the worst-case scenario, which is an increase in expenses and a fall in income, come together.”
The budget expansion project authorizes the Government to increase expenditures by an amount close to $ 1.9 trillion, with which the total projection of expenses for 2020 would exceed $ 7.3 trillion, with an increase of 33%.
“This expansion of the budget will be used by 80 percent on the agenda of the reactivation and palliatives necessary for the pandemic,” said Heller.
The ruling legislator also announced the implementation of a $ 300 million item for the Posadas Hospital and said that the chief of staff will be empowered to make assignments to “attend the interharvest program,” among other issues.
In turn, the PRO deputy, Luciano Laspina, He stressed that the budget expansion “is debated legislatively and has not been applied through DNU” and pondered that the Executive Branch has accepted some of the changes proposed by its space.
Laspina added that “in the current conjuncture, dominated by the pandemic,” its political space will not be ready “to avoid that the Government has the tools to face the emergency, so that the Argentines do not go hungry and so that the companies do not fail.”
“For this reason, we are going to accompany the general vote on the project,” he anticipated and criticized that “the Executive Power has not sent a single measure of fiscal austerity, such as a reduction in the salaries of officials, any signal to that effect, that it is something that is in debt. “
“I want to emphasize that several changes proposed by the opposition were accepted, such as the example of the departure for public transport in the interior of the country, which is in crisis and has been unemployed for several days,” he added.
For his part, the radical deputy Luis Pastori highlighted the issue of assignments to national universities, since “a global amount without distribution per university is assigned, generating great uncertainty; and these transfers should be assigned to each of the national universities according to the proportion established by law for the university system.”
The main opposition bench insisted in other speeches of its exponents their criticisms of article 7 of the norm, since they considered that “the elimination of the authorization to bid public titles in foreign currency to subscribe with other titles issued in pesos, in practice means a dollarization of debt. “
In this sense, the deputies of Together for Change they anticipated that during the vote in particular they would not endorse articles 7, 8 and 11.
The deputy of the Federal Consensus, Jorge SarghiniHe assured that his bloc “fully supports” the budget expansion project and that from his party “we do not require the government to give us details that we know it cannot give us” in a world where uncertainty reigns due to the pandemic of coronavirus.
In addition, he argued that the expansion must be approved because as a consequence of the pandemic “Resources grew by 25 percent while expenditures grew by 75 percent due to the collapse of the economy.”
“We unfortunately see in this budget that Article 7 puts a black cloud because it determines a privilege because it dollarizes securities that are in pesos and that gives a privilege,” he said.
Meanwhile, the Cordovan deputy Pablo Cassineiro stressed that the creation of the Covid Background for the public transport of passengers from the interior of the country -for an amount of 10,500 million pesos- It is a “topic that we asked for and that could be resolved through dialogue.” However, he complained that “65 percent of the subsidies go to the metropolitan region.”
The expansion of expenses will be financed in part with resources from tax collection of $ 642,844 million and the rest with the income of the Central Bank and use of financial sources, with which the deficit will be 1,216,738,000 pesos.
The project contemplates reinforce the resources of the Ministry of Social Development by $ 55,324.7 million for food assistance, and those of the Productive Development portfolio at $ 215,000 million.
$ 90,000 million will also go to the National Social Security Administration (Anses) for the payment of the Emergency Family Income (IFE) and $ 80,000 million for the Emergency Care Program for Work and Production (ATP).
In addition, the $ 50,000 million pesos will be expanded Province Financial Emergency Program created in April, to attend to the emergency as a consequence of the pandemic.
One of the issues that caused the most controversy between the legislators of the Front of All and the opposition -both Together for Change and in the deputies of the Federal Consensus- it is the seventh article authorizing the issuance of dollar securities to exchange for peso bonds.
Another point that generated rispideces between the ruling party and the opposition was the article that established the replacement of 10.5% of VAT on common milk and the reduction of that tribute to additives and that was finally withdrawn from it.
Meanwhile, the debt restructuring project issued under Argentine law -which already has a sanction from the Senate- provides for the restructuring of the national government debt implemented in public securities denominated in US dollars issued under the law of the Argentine Republic through a swap operation, with the aim of giving equal treatment to local bondholders in relation to external creditors.
According to the initiative, holders of eligible securities that do not adhere to the invitation to exchange will continue with their deferred payments until December 31 of next year, under the plan that is currently in force.
A report published by the Budget Office of the National Congress, explained that the project for the restructuring of US $ 41,717 million of dollar securities issued under Argentine legislation implies relief in payments of almost US $ 20,000 million until 2030.
In the text of the project, it is highlighted that “Argentina’s repayment capacity is related both to long-term sustainable growth and to the commitments that have been assumed in the offer made for the restructuring of public debt issued under foreign law “
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