MercoPress. South Atlantic News Agency
Government spending and jobs boost President Cristina Fernandez re-election
Capital spending on public works rose 58% over a year ago With Argentina’s presidential election less than two months away official data is showing why President Cristina Fernandez de Kirchner is poised to make effective her re-election bid in October.
The primary surplus in July came in sharply lower than expectations as the government cranked up spending and unemployment fell to 7.3% in the second quarter.
The July primary surplus totaled just 387 million Pesos (94 million dollars), well under the 1.75 billion Pesos economists polled by the central bank had predicted, and down from 934 million Pesos in June. In July 2010, the government reported a primary surplus of 3.9 billion Pesos.
The primary surplus measures government revenue less government spending and acts as a yardstick for the country's financing needs.
The fiscal deficit in July, which includes debt payments, totaled 196 million Pesos, the government said in a statement.
The bulk of the gain in spending came in the form of capital spending on public works. Capital spending rose 58% on the year and took a big bite out of the government's primary surplus, as it made up 20% of all spending, according to the government.
Despite soaring tax revenue, which rose 28.7% on the year in July to 47.9 billion Pesos, the government has seen its primary surplus shrink in recent months. During the first seven months of the year, the country posted a primary surplus of 11.3 billion Pesos.
President Cristina Fernandez on the campaign trail announced on Tuesday that the unemployment rate in the second quarter fell to 7.3%.
That brings the rate down from 7.4% in the first quarter, according to data from Indec.
Unemployment has been declining steadily inline with booming economic growth, which is fueled by strong consumer and government spending, and rising exports.
Top Comments
Disclaimer & comment rules-
-
-
Read all comments50 percent of the voters recieve free money so of course she is a shoe-in for October, which is really sad because we can not take much more 30% inflation.
Aug 24th, 2011 - 11:15 am 0I like the Argentina economic model.
Aug 24th, 2011 - 12:31 pm 0The main error of many is to underestimate the leadership of Christina, for being a woman in Argentina and Latin America when he has a remarkable consensus in their favor.
Aug 24th, 2011 - 12:54 pm 0It is the main figure of Peronism and has demonstrated a capacity to govern against unfavorable international economic crisis and Europe and the United States despite the bad press from CNN, BBC and related groups colonialism as Clarin and La Nacion.
Defects to be overcome, but certainly their leadership and consistency in the fight against the endpoints of the dictatorship and the defense of sovereignty against foreign aggression. It is in vain Oyanta Umala, Dilma Rousseff, Rafael Correa and other South American presidents are referenced with her on various issues and even Barack Obama takes it as an example in nuclear disarmament policies without neglecting the domestic economic, for its plans social integration as the universal child allowance, Law on Media and the distribution of wealth against monopolies.
As for the Falklands conflict is not about Cristina Kirchner only it is more, transcends those in power in Argentina, and continue to claim any party that wins because it is a state policy.
She has managed to grow global awareness of the conflict. Latin America supports the claims, both as MERCOSUR and UNASUR United Nations.
It is a way of dealing together with economic and military aggression of the United States and Britain in 500 years of history.
Commenting for this story is now closed.
If you have a Facebook account, become a fan and comment on our Facebook Page!