Alberto Fernandez and Martin Guzman accelerate the signing of the 2022 budget decree

At this point it is a formality and it is excluded that its content will not be finalized. But in the technical and conservative eyes of IMF men and women, it is essential to move forward. The budget in question is the same as for 2021; the one to be expanded with new macroeconomic data by decree, in addition to 882/21, signed by President Alberto Fernandez, Chief of Staff Juan Manzur and Guzman himself and published in the Official Journal on 23 December; and where it was stated that “given the advanced stage of the 2021 budget year, it is not possible to immediately and precisely define the adjustments referred to in Article 27 of the above-mentioned law (Financial Administration Act), for which they will be made in a timely manner”.

The most important thing in this administrative act will certainly be adjusted the annual inflation target to a more realistic rate of 33%, which was presented in the draft budget, which was rejected by Congress earlier this year, and 48%, which appeared in the agreement with the IMF. Guzman will have to be careful when associating his new projection with the role. If he accepts the IMF’s request for 70% inflation, he will put all local trade unions on high alert, which he closes, on his recommendation, joint unions close to a 60% annual increase. But on the other side of the analysis, if it involves inflation a little less than 60%; he will risk turning his budget creature back into an incredible projection. For now, the official strategy is to allow expenditures and expenses for the work of the executive branch through administrative decisions that allow the transfer of money necessary for the functioning of the national public sector. The last of these administrative decisions was signed by Guzman and Manzur on June 1 and bears the number 549. This provision allows additional costs of $ 73.658 million for various departments of public administration and beyond the updates inherited from 2021.

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