Just over four months after Massa’s arrival at the Ministry of Economy, the Institute for Economic Research of the Córdoba Stock Exchange analyzed the fiscal adjustment that he has implemented.

Primary spending had been growing at a real rate of 9% in the first 7 months of this year; in the three following months, the year-on-year comparison with the same months of 2021 shows a drop of 6%.

Although a decrease in the growth rate of public spending is observed, part of the adjustment is achieved with “accounting artifices” such as the “soybean dollar” that artificially increased the income of the treasury. The government will have to speed up the adjustment in the last two months of the year to meet the goal of 2.5% of GDP agreed with the IMF.

Where was the largest adjustment?

Energy subsidies grew 25% in real terms (above inflation) between January and July, but then fell to 17%.

Social assistance plans were also reduced. Until the middle of the year they were growing at a real 31%, but in the August/October quarter they fell by 13%. They can go up, with the emergency bonus that is paid in November and December.

However, according to the analysts of the Stock Market, “the most pronounced fall if the main items of national spending are considered”, occurred in the operating expenses of the State (except salaries to personnel), which decreased by 42% in real terms. year-on-year since Massa took office, when until his arrival the adjustment was 4%.