July 5th, 2024
1. The Government presented a preview of the Budget 2025
The Executive Branch submitted to Congress the progress report of the Budget 2025, a project that will be formally presented next September 15. The report confirms that the PAIS tax will end at the end of the year, which would have a negative impact on the 2025 collection. In addition, the official dollar exchange rate was forecast at AR$1,016 in December with a year-on-year inflation of less than 130%. At the same time, a 3.5% drop in GDP and a decrease in private and public consumption, as well as in investment, were foreseen. The report also details four axes of budgetary policy, including fiscal balance, social assistance, modernization of the State, and security and defense.
2. The government convened the July pact
After the final approval of the law of bases, the national government updated the 10 points of the May Pact with three modifications, and summoned the governors to sign an act on Monday night, May 8, in San Miguel de Tucumán. It was reported by official sources that the provincial governors have already received the invitations issued on Tuesday by the Presidency. It was also reported that the invitation to the event is “broad,” ranging from governors and former presidents, to deputies, senators, union leaders and members of the Supreme Court. On the eve of Independence Day, President Milei expects to gather most of the governors in Tucumán, where the Peronist “dialoguist” Osvaldo Jaldo governs, to sign the decalogue announced in the legislative assembly of March 1.
La Voz del interior: El Gobierno convocó al Pacto de Mayo: cuáles fueron las reformas, cómo será el acto y quiénes asistirán
3. Tax revenues fell again in June
This time, the strong growth in PAIS tax revenues was not enough to avoid the fall in tax collection in June. According to the AFIP, the amount collected in the sixth month of the year amounted to $11,297,649,000,000, which, although nominally it implied an increase of 221.2% with respect to the same period of 2023, in real terms it meant a drop of 14%. Had it not been for taxes related to foreign trade, mainly PAIS, the drop would have been 17%, according to Iaraf’s calculations. In fact, this tax was again, by far, the one that grew the most in June, since $780,042,000,000 was received (a variation of 1321.8% in nominal terms). According to the AFIP, in this case, the increase in the taxable base was favorably affected by the income from the payment applied to the purchase of foreign currency for the payment of certain imports.
La Nación: La recaudación fiscal cayó 14% en junio
4. Federico Sturzenegger was appointed Minister of Deregulation and State Transformation
At midnight on Friday, through Decrees 585/2024 and 586/2024, the National Government made official the creation of the Ministry of Deregulation and Transformation of the State, the eighth one without counting the Chief of Staff, and the appointment of Federico Sturzenegger as Minister in charge of this new portfolio in charge of promoting the modernization, reform and deregulation of the State. Sturzenegger is an economist and was President of the Central Bank between 2015 and 2018, during almost the entire presidency of Mauricio Macri, National Deputy for the City of Buenos Aires between 2013 and 2015, and President of Banco Ciudad between 2008 and 2013. His responsibilities in this new position include assisting the President of the Nation and the Chief of Staff of Ministers, in order to their competencies, in all matters concerning the courses of action for the implementation of deregulation, reform and modernization of the State with a view to resizing and reducing public spending and increasing the efficiency and effectiveness of the agencies that make up the National Public Administration, the transformation of management, the simplification of the State, the design and execution of policies related to public employment. Its functions cross almost all the public life of the country, and are focused on deregulating the current regulatory system, sometimes overlapping with the functions of other ministries. For this reason, it is clarified that it must do so in coordination with the corresponding area.
La Nación: Federico Sturzenegger es el nuevo ministro de Desregulación y Transformación del Estado
5. Production of battery grade lithium carbonate started in Salta
Chancellor Diana Mondino participated in the inauguration of the battery grade lithium carbonate processing plant belonging to Eramine South America, a subsidiary of the French group Eramet and its Chinese partner Tsingshan, on July 3, in the Los Andes Department, Province of Salta. With yesterday’s inauguration, all the provinces of the Lithium Triangle have at least one battery grade lithium carbonate production plant. In Salta, Eramine Sudamericana expects its first lithium carbonate shipment to take place next November, as confirmed by Christel Bories, Director and CEO of the company, at the press conference held at the Convention Center located in the capital city of Salta. 85% of the plant’s production will be used to supply the electric car market in China.
El Cronista: Litio: Eramine anticipa inversión de u$s 800 millones para su segunda planta de producción