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What does the alternative project to the Universal Salary say?

With the project of Universal Basic Salary almost ruled out, Kirchnerism presented in the Senate an alternative to implement the “Revenue Booster”a measure that will consist of a monthly monetary benefit for people who are below the indigence line and who would reach 1.7 million people.

The bill was introduced by Senator Juliana di Tulliovery close to the vice president Cristina Kirchnerand accompanied by the signature of the head of the Frente de Todos interbloc, Jose Mayans. As iProfesional had anticipated, the objective of Kirchnerism is to advance with a measure for the most vulnerable sector of society similar to the Universal Salary, but more limited.

While that project promoted by the pro-government deputies led by the social leader Juan Grabois expected to reach 7.5 million Argentines (unemployed, informal workers and other people who at the beginning of the year received the extraordinary bonus or “new IFE”) this initiative It is limited to people who do not cover the basic food basket of an adult.

In this way, the DiTullio project reduces the number of beneficiaries with respect to the Universal Wage initiative and, with this, tries to not collide with the adjustment of public accounts that the Ministry of Economy intends to carry out by reducing the tax impact of the measure, which would be 0.09 GDP for this yearaccording to the senators.

Income Reinforcement: what the alternative project to the Universal Salary says

The “Revenue Reinforcement” is instituted in the project as “a non-contributory monthly monetary benefit and of national scope” for an “amount equal to the value of the Basic Food Basket (CBA) of an adult informed by the National Institute of Statistics and Census (INDEC)”, stipulated in $15.057 as of June 2022.

They will be able to request this monthly reinforcement “women between 25 and 59 years old and men between 25 and 64”, as long as they do not receive unemployment benefit or programs such as Progresar, Enhance Work or the Food Card, among other social plans. Neither retirements, pensions or withdrawals of a contributory or non-contributory nature.

Juliana Di Tullio, of maximum trust of Cristina Kirchner, presented the initiative in the Senate

“This is how we seek to cover the age group that is not reached by other social programs understanding that people who fall outside that range can access the Universal Assignment for Children and Progress or have already reached retirement age and therefore it is presumed that they have covered the basic food basket,” the senators explained.

The benefit “will be temporary” for a period of one year, during which the law enforcement authority (which will be the Anses) will verify whether or not there were changes in the living conditions of the person receiving the Income Reinforcement. In case of not registering improvements, the benefit can be renewed.

In its second article, the initiative clarifies that the benefit must be “accompanied by a training, habitat and health policy” for the people who receive it, in order to comply with the temporary nature of its granting.

“Reduce homelessness”: the goal of the new project

The initiative also empowers Anses to update “quarterly, if necessary, the amount of the monetary benefit in order to equate it with the value of the Basic Food Basket of an equivalent adult reported by INDEC”.

The central objective of the measure, as explained by the senators of Kirchnerism through an official statement, is reduce homelessness “guaranteeing the access to adequate food of people who are in a situation of extreme vulnerability”.

For this reason, the project establishes that the Anses (body before which the reinforcement must be requested) will carry out before the granting of the benefit “socioeconomic and patrimonial evaluations on the basis of objective criteria established by the regulations, in order to corroborate the situation of real need of individuals”.

The Income Reinforcement will be monthly and will be equivalent to the amount of the Basic Food Basket

Within this framework, the bill also establishes the creation of the National Registry of Income Reinforcement (ReNaRI) where the people who access this monetary benefit will be registered so that Anses can monitor their socioeconomic situation. In addition, in this registry, the beneficiaries must certify “the performance of annual medical consultations according to their gender and age.”

The fiscal cost of the measure, key to the economic plan

Since last July, Kirchnerism has been evaluating the possibility of promoting an alternative project to the Universal Basic Salary, to which the government had lowered its thumb. The reason was the fiscal impact that this measure would have and its contradiction with the decision to move forward with a adjustment of public accounts.

The idea of ​​presenting a new project was, precisely, pass the filter of that setting anticipated by former Economy Minister Silvina Batakis and ratified -and even deepened- Serge Massa by replacing her as holder of that portfolio.

That is why the senators of the Frente de Todos who promote this new initiative stressed that the Income Reinforcement it will have a fiscal cost of 0.09% of GDP for the remainder of 2022 and 0.44% during the next yearif the law is approved.

In this way, they seek do not repeat short circuits that occurred with the Universal Basic Salary after having given support to Massa to carry out an adjustment plan that allows accommodating the macroeconomic variables after a month of strong exchange rate tension and rising inflation expectations.

As a sign of alignment with that plan, the space that leads Cristina Kirchner took away the support that she had initially given to the original project presented by the deputies of the Great Fatherland Front of Grabois, who in this context and after the first announcements by Massa, are now evaluating leaving the ruling bloc in the lower house.

The granting is in charge of Anses, which may update the amount quarterly

The new project promoted by Kirchnerism could serve as containment for that sector of the official alliance that calls for measures focused on the most neglected sectors of society and, therefore, most affected by inflation.

However, the initiative must first advance in the Senate, where the Front of All would have no problem approving it, and then seek support in the Chamber of Deputies. There, the correlation of forces with the opposition is much more equal and, therefore, the approval of the final law will depend on the support that the ruling party achieves.

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