BUENOS AIRES (Dow Jones)–Argentina Monday reported a primary surplus of 446 million pesos ($105 million) in October, down sharply from the ARS3.06 billion surplus reported a year earlier.
Tax revenue has risen sharply this year thanks to a booming economy and high inflation, but spending also surged ahead of presidential elections in October.
President Cristina Kirchner handily won a second term with 54% of the vote.
During the first 10 months of the year, the government posted a primary surplus–revenue less spending, but not including debt payments–of ARS12.16 billion, the Economy Ministry said in a statement.
Including debt payments, Argentina ran a fiscal deficit of ARS2.98 billion in October.
Faced with a shrinking fiscal surplus, the government has started to trim expensive subsidies for water, gas, electricity and public transportation.
Earlier this month, the government said it would eliminate the subsidies for a number of industries and wealthy residents.
According to ASAP, a non-governmental organization dedicated to improving public-sector finances, the government’s 2012 budget proposal earmarks ARS75.3 billion for subsidies–about 15% of total projected spending.
-By Ken Parks, Dow Jones Newswires; 54-11-4103-6740, ken.parks@dowjones.com
–Shane Romig contributed to this article.
Source: http://online.wsj.com