Budget 2022: there will be more resources for social plans, but it will be adjusted in health, work and subsidies

The “adjustment budget” that Máximo Kirchner questions the Minister of Economy, Martín Guzmán, in Its projections for 2022 would deserve an addition: it would be, rather, a “selective” adjustment budget which contemplates, on the one hand, significant increases in social plans managed by La Cámpora and the Evita Movement but, on the other hand, a strong reduction in health, employment and subsidies expenses of different types .

With the index of poverty at alarming levels – 40.6% according to the INDEC last week–, the Ministry of Economy took good care to preserve the funds allocated to the two most important assistance programs: the Alimentar Card –in charge of the Secretary of Social Inclusion Laura Alonso , from La Cámpora -, which next year will have an increase of 68% ($ 259,000 million) compared to the current budget. Today this social plan reaches 2.4 million people; The Government plans to expand this universe to 2.7 million beneficiaries who receive between $ 6000 and $ 9000 per month.

The program Promote Work , led by the Secretary of Social Economy, Emilio Pérsico , leader of the Evita Movement , it will also be increased next year, although to a lesser extent than that of the Alimentar Card. In fact, in terms of GDP it remains almost the same. The 2022 budget provides for a 43% increase ($ 243.1 billion) compared to the current allocation, although the universe of beneficiaries would also be greater: today there are 950,000 and it is expected to reach one million one hundred thousand people according to the 2022 budget.

These increases contrast with falls that are verified in other items of the Ministry of Social Development commanded by Juan Zabaleta. By case, the program “Food supplements” will fall by 60% ($ 10.3 billion); while assistance to community kitchens and picnic areas will do so by 33% ($ 6 billion). Yes, it will increase attendance at school canteens by 55% ($ 14.7 billion).

“This is a budget for poverty”, synthesizes the deputy Roxana Reyes , from Together for Change , specialist in the social budget. “Although two of the most important items in terms of social protection, the AUH and the Alimentar Card, remain with allocations similar to the current ones, there are significant reductions in the items intended to alleviate the effects of unemployment and different programs of the Ministry of Social Development . These reductions are worrying because they are relevant policies to guarantee the rights of people in vulnerable situations ”, he warns.

Next year there will also be budget drops in Health programs and in plans to provide financial assistance to companies affected by the pandemic. As reflected in the draft budget, the Government does not foresee that a new wave of Covid-19 will hit our country next year and, in line with that premise, drastically reduced some of the programs available during the

In effect, in the project sent by Guzmán the health function (that is, it includes all health spending, regardless jurisdiction) is $ 643.9 million, while the current allocation is $ 572.2 million. “This implies an increase of 12.54% nominal, but a fall in real terms of 20.96% “, warns the radical deputy Alejandro Cacace.

T there is also a reduction in the item destined for the purchase of vaccines against Covid-19 despite the fact that, according to the initiative, the acquisition of 80 million doses and 5 million antigen tests. The project has for this an allocation of $ 122,200 million pesos, well below the estimated spending this year, $ 153,500 million.

“The numbers indicate a decrease in real terms of the budget allocated to health, when reality indicates that the epidemiological situation, beyond the current situation, has not It is no longer a problem, ”says Cacace.

The Government has also decided to prune different programs implemented during the health emergency , among them the REPRO II , in charge of the Ministry of Productive Development. It is a tool to assist workers in a dependency relationship through the payment of a fixed monthly sum per worker that ranges between $ 9000 and $ 12,000 per month.

This benefit reached 778,682 workers from 45,852 companies this year. However, this universe will be drastically reduced as the item will be reduced from the current $ 80.1 billion to $ 36.9 billion.

The same will happen with the Fund of Productive Development (Fondep) , also under the orbit of Minister Matías Kulfas , by which rate subsidies are allocated on loans to the productive sector and monotributistas. The 2022 budget assigned an item of $ 42.2 billion, while currently it is $ 65,000 million.

The Job function also sees a sharp drop in real terms in budget . Despite the fact that unemployment continues at high levels (9.6% of the population according to the latest INDEC index), the program “Employment Actions”, designed to insert unemployed workers into employment, improve their employability and incentivize companies to create and maintain jobs, it will be reduced by 72%: from the current $ 86.8 billion to $ 50.3 billion. Unemployment insurance will also decrease by almost 30% .

Encouraging job creation and the replacement of social plans is, paradoxically, the main electoral promise of the Government.

The initiative also includes a pruning in the energy subsidies (gas and electricity): this year involved an expense of $ 971,794 million and by 2022 it is expected that this expenditure will reach $ 1,024,718 million, a 5 % of nominal increase and a fall of 0.5% points of GDP. If there is no tariff segmentation policy – which for now is not contemplated in the Budget – the amounts should increase by at least 30%, the specialists estimate.

Another point that will generate risks is the amount of subsidies for transportation from the interior, which led to the presentation of a bill from the ruling party itself to increase that game. In effect, the 2022 budget project foresees a sum of $ 27,000 million, the same figure budgeted for this year, which implies a fall in real terms that the governors do not accept.

For this reason, on behalf of the provincial leaders, the deputy Marcelo Casaretto, from the Frente de Todos, presented an initiative to increase the amount to $ 35,000 million. It will be one of the many points of the budget that, surely, the ruling party will review the bill sent by Guzmán.

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