MercoPress. South Atlantic News Agency

Argentina ended 2020 with a 6,5% of GDP budget primary deficit

The deficit was the result of a revenue drop of 0,7% of GDP, and expenditure growth of 3,5% of GDP, mainly to help families and when possible jobs

Argentina's 2020 budget primary deficit reached 6,5% of GDP, according to a release from the Economy ministry, while the overall deficit was equivalent to 8,5% of GDP, given the massive support to the government to address the pandemic a recession.

The deficit was the result of a revenue drop of 0,7% of GDP, and expenditure growth of 3,5% of GDP, mainly to help families and when possible jobs, as well as aid for the different provinces.

However in December the fiscal deficit was below the original estimate in the 2020 budget, because of economic activity recovery and a slight increase of fiscal revenue.

In effect for the fourth month running revenue in real terms increased, and despite primary outlays also expanded because of transfers and capital spending, overall the year to year balance is similar to that before the pandemic.

Although the pandemic only worsened the situation, Argentina has undergone three years running of recession, (2018/19/20) and before that since 2012 went through a situation of stagflation.