II – RESOURCES OF THE FEDERAL PUBLIC ADMINISTRATION
II.1 – Evolution of Resources 2001/2000
Tax revenue of the Federal Administration fell 3.2%, in the first semester 2001, while social security contributions were 4,6% lower than the same period of the previous year.
FEDERAL PUBLIC ADMINISTRATION
Current and Capital Resources
-In million Pesos-
|
Cumulative |
Cumulative |
Differences |
Variation |
|
|
I T E M |
II Q 2000 |
II Q 2001
|
% |
|
|
TAXES |
14.030,7 |
13.576,0 |
-454,7 |
-3,2 |
|
- Income |
3.621,6 |
3.836,5 |
214,9 |
5,9 |
|
- Value Added (*) |
5.167,3 |
4.663,9 |
-503,4 |
-9,7 |
|
- Excise |
379,6 |
501,6 |
122,0 |
32,1 |
|
- Stamp |
22,3 |
27,1 |
4,8 |
21,5 |
|
- Import Duties |
968,5 |
886,9 |
-81,6 |
-8,4 |
|
- Fuels |
1.664,1 |
1.558,5 |
-105,6 |
-6,3 |
|
- Statistics |
19,2 |
19,1 |
-0,1 |
-0,5 |
|
- Personal Property |
215,3 |
186,2 |
-29,1 |
-13,5 |
|
- Monotribute |
128,0 |
116,1 |
-11,9 |
-9,3 |
|
- Minimum Notional Tax |
151,5 |
159,3 |
7,8 |
5,1 |
|
- Interests Paid and Corporate Borrowing |
225,8 |
144,5 |
-81,3 |
-36,0 |
|
- Road Vehicles, Yachts and Aircraft |
56,4 |
8,9 |
-47,5 |
-84,2 |
|
- Additional Cigarrettes |
276,1 |
131,9 |
-144,2 |
-52,2 |
|
- Bank credits and debits |
0,0 |
759,5 |
759,5 |
- |
|
- Other (**) |
1.135,0 |
576,0 |
-559,0 |
-49,3 |
|
SOCIAL SECURITY CONTRIBUTIONS |
5.361,4 |
5.117,3 |
-244,1 |
-4,6 |
|
OTHER CURRENT RESOURCES |
3.026,3 |
2.012,4 |
-1.013,9 |
-33,5 |
|
TOTAL CURRENT RESOURCES |
22.418,4 |
20.705,7 |
-1.712,7 |
-7,6 |
|
TOTAL CAPITAL RESOURCES |
196,2 |
76,3 |
-119,9 |
-61,1 |
|
TOTAL RESOURCES |
22.614,6 |
20.782,0 |
-1.832,6 |
-8,1 |
|
(*) Net of Reimbursements |
||||
|
(**) Comprises the surplus from the Federal Commitment. |
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Beyond the reasons for the variations in the individual taxes, the evolution of tax collection in the first semester of the year under analysis was generally influenced by the slowdown in economic activity, the fall in revenue from easy payment regimes, and the deterioration of financial conditions. The behavior of the financial variables has led to a decline in revenue collection. These negative trends were partially offset by the implementation of the tax on Current Account Credits and Debits, and by Income Tax revenue from oil companies.
Income tax increased by 5.9% compared with semester 2000, mainly due to an increase in the balances of tax returns and advance payments from companies closing in December. This effect was a result of the higher earnings reported in most of the oil companies, due to the rise in oil prices during 2000. Changes in some withholding regimes also contributed to this increase. These effects were offset by a reduction in the prepayments paid by companies during the period, a fall in prepayments by individuals, a decline in proceeds from easy payment regimes, and the payment on account of the Current Account Credits and Debits Tax.
VAT revenue net of reimbursements to exporters fell by 9.7%. This was due to the fall in economic activity, reimbursements to exporters, a reduction in the rates on capital goods to 10.5%, fewer proceeds from ‘easy payments’ regimes, and because the increase of the rate of the Current Account Credits and Debits Ttax is recorded as payment on account of VAT.
An increase in proceeds from the Excise Tax totaled 32.1%. This variation resulted from an increase in collection of the cigarette tax, due to an increase in its tax base, and due to extraordinary revenue related to the compliance of the current agreement with the tobacco industry.
Proceeds from Import duties fell by 8.4%, as a result of a similar fall in imports. The average tariff showed a slight increase, as a result of changes in the tariff levels, the modifications in the composition and origin of imports, and other features of administrative nature.
Revenue from the fuel tax dropped 6.3% compared with same period 2000. This was a result of a fall in sales of taxed fuels, and in the reduction of the rate, current as of last June.
Revenue from the Property Tax showed a decrease of 13.5%, mainly due to a change in the rate, which resulted in an increase in advances during the second quarter 2000. The reduction of proceeds from prepayments during the second quarter 2001 added to the downward trend.
Revenue from the Minimum Earnings Tax grew 5.1%, due to an increase in payments corresponding to balances of tax returns and to an increase in proceeds from ‘easy payments’ programs.
Proceeds from Interest Paid and Corporate Borrowing showed a decrease of 36%. This is mainly due to a reduction of the rates current since January 2001 and due to a likely reduction of the base.
The 52.2% decline in proceeds recorded for the Additional Cigarette Tax was due to a reduction in the rate.
Social security contributions were 4.6% lower than the same period last year. This was due to a reduction on the taxable wage base of employees, a fall in the number of independent workers, a decline in the percentage of contributors to the pay-as-you-go system, and the fall in revenue from the ‘easy payments’ regime. This was offset by factors of administrative nature.
Moreover, a decline in "Other Current Resources" is mainly due to the impact during FY2000 of cash input from the Fiduciary Fund for Provincial Development and earnings arising from the freeing of guarantees affected by the Brady Plan. This was partially offset by the extension of the "Yacimiento Loma La Lata - Sierra Barrosa" in the current fiscal year.
