Public Expenditure on Human Development in Argentina

Public Disclosure Authorized Public Disclosure Authorized WORKING PAPER N.03/04 Report no. 29005 Produced by the World Bank Office for Argentina, Chile, Paraguay and Uruguay Public Expenditure on Human Development in Argentina Damián Bonari* Public Disclosure Authorized Public Disclosure Authorized Marcelo Becerra Ariel Fiszbein April 2004 This publication was prepared and produced by the World Bank Office for Argentina, Chile, Paraguay and Uruguay. The series “Working Papers” does not constitute a formal document of the World Bank. It is informally published and distributed to promote discussion and comments from the community that works on the topics presented. The findings, interpretations, judgements and conclusions expressed in this paper are those of the author or authors and should not be attributed to the World Bank, its affiliate organizations, the members of the Executive Board or the governments they represent. (*) Head of the Directorate of Consolidated Social Expenditure. The statements made in this document are exclusively those of the authors and do not necessarily reflect the opinions of the Ministry of Economy and Production. Working Papers are available at www.bancomundial.org.ar For comments and/or suggestions, please write to mbecerra@worldbank.org World Bank Office for Argentina, Chile, Paraguay and Uruguay –Working Paper N.03/04 Table of Contents Introduction ...................................................................................................................................2 I. Analysis of Public Expenditure on Human Development 2000-2001....................................2 I.1. Definition.............................................................................................................................2 I.2. Responsability of the Different Government Levels ...........................................................7 I.3. Financing of Public Expenditure on Human Development ...............................................14 II. Public Expenditure on Human Development in the Post-Convertibility Period...............17 II.1. Changes at National Level ...............................................................................................17 II.2. Changes at Provincial Level.............................................................................................25 III. Conclusions………………………………………………………………………………32 Annex ..........................................................................................................................................35 Bibliography ................................................................................................................................56 Index of Boxes Box 1: Consolidated Social Public Expenditure……..…………………………………………5 Box 2: Considerations on Mutual Funds Expenditure ………………………………………....8 Box 3: Fiscal Relation between the National Government and the Provinces…………...……21 Box 4: Social Assistance in Times of Crisis………………………………………………..….27 1 World Bank Office for Argentina, Chile, Paraguay and Uruguay –Working Paper N.03/04 INTRODUCTIONi This paper develops the sectoral, structural and financing composition of public expenditure on human development. The objective of this paper is to provide a first contribution to the multiples aspects that are treated, laying analytical foundations for further developments. In particular, the report analyses the distribution by government level and expenditure composition during and after convertibility. For that purpose, the period 2000-2001 is compared with years 2002-2003. The document provides information to identify and quantify social expenditure, simultaneously considering the sectors included and the agents involved. The purpose of this document is eminently descriptive, and therefore, the analyses and conclusions to be inferred from it will be the result of future research. The report is organized in the following way: the first part of the document focuses on public expenditure on human development in the 2000-2001 period and the responsibility of each government level for its execution and financing. The second part refers to public expenditure on human development during the 2002-2003 period. The main changes in the sectoral and pragmatic composition of expenditure are described for the national government, and financing for social plans is analysed. With respect to provincial governments, the paper studies a group of provinces which were selected on the basis of the data available. I. ANALYSIS OF PUBLIC EXPENDITURE ON HUMAN DEVELOPMENT 2000-2001ii I.1. Definition This section will analyse the structure of public expenditure on human development (GPDH) in Argentina in the period 2000-2001, that is to say, in the last two years of the convertibility regime. Although as from 2002 there are a series of important changes –which are reviewed in detail in the second part of the document–, many of the structural aspects identified are still valid. The availability of detailed information on the provincial level is limited for years 2002 and 2003. However, the structural analysis performed for 2000-2001 is valid for the following years without major accuracy losses.iii The frame of reference of analyses performed in Argentina has traditionally been Consolidated Social Public Expenditure (GPSC), that is expenditure that is meant to provide health, education, housing and fresh water services; to enforce compensatory nutrition, labor and social assistance policies aimed at mitigating situations of uncertainty in relation to income, health, employment and other contingencies. GPSC comprises budget and extra-budget expenditure from the non-financial public sector of the three government levels. The usual consolidation process follows the criterion of recording expenditure in the jurisdiction that executes it and not in the one that finances it. Therefore, to avoid duplications, fund transfers from the National government to the provinces and municipalities, and from the provinces to municipalities are deducted from the financing jurisdiction and are included in the executing jurisdiction.iv In this document, we will use a narrower definition, in an effort to reflect the activities that are typically related to human development more closely.v In particular, the analysis focuses on public “Public Expenditure on Human Development in Argentina.” By Damián Bonari, Marcelo Becerra and Ariel Fiszbein. 2 World Bank Office for Argentina, Chile, Paraguay and Uruguay –Working Paper N.03/04 expenditure that finances activities linked to social services traditionally aimed at individuals. The first difference with the definition of GPSC is that expenditure on housing and fresh water is excluded. From the point of view of public policy making, expenditure on these items is strongly linked to infrastructure services. The definition of GPDH used includes, in the first place, the provision of education services in the different levels; but it excludes culture and science and technology, -as we understand that to a great extent, these areas do not involve the provision of basic services for the development of individuals–, and expenditure on education for the armed and security forces, as from the point of view of public policy making, these services belong to the defence and/or security areas and not to the field of social policies, which are part of GPSC. Thus, the Education sector comprises the items that are directly linked to the provision of education services to the population –public sector teachers’ salaries and transfers to the private sector, the purchase of goods and services, expenditure on infrastructure and equipment, and transfers to national universities– and the policy, coordination, regulation and system management actions that enable the provision of such services. Likewise, expenditure on compensatory programs –for e.g. scholarships– executed by the ministries of Education is included in the Social Assistance sector and not in Education, as it is considered to provide support to vulnerable groups and not a part of the cost of providing education services. In the second place, GPDH encompasses the provision of public health services and expenditure on public providers of health services –for e.g. hospitals and health centers– and the drugs and inputs that the national government provides for the fight against AIDS and for maternal and child health care for the needy. “Public Expenditure on Human Development in Argentina.” By Damián Bonari, Marcelo Becerra and Ariel Fiszbein. 3 World Bank Office for Argentina, Chile, Paraguay and Uruguay –Working Paper N.03/04 Box 1 Consolidated Social Public Expenditure GPSC for 2000 reached $59,341.62 million of 2001 –in other words, 21.23% of GDP. In 2001, there was a slight decrease of 0.25%; however, due to the fall in the level of economic activity, it increased in terms of GDP. Concerning consolidated total public expenditure (GPT), GPSC represented 62.82% in 2000 and 61.62% in 2001. At National level, as a percentage of GPT, GPS is approximately of 62% and in the provinces, of 66%. Instead, municipalities show a lower ratio, closer to 51%. For 2000, disaggregation by government level reflected that $30,467.90 million of 2001 correspond to the national government, $24,858.63 million of 2001 to provincial governments and $4,015.08 million of 2001 to municipal governments. In other terms, 51.34% of GPSC correspond to the national government, 41.89% to the provinces and 6.77% to municipalities. Consolidated Social Public Expenditure, 2000-2001 In millions of pesos of 2001 and in percentages GPSC 2000 In millions of $ of 2001 % Structure As a % of GPT As a % of GDP 2001 In millions of $ of 2001 % Structure As a % of GPT As a % of GDP National Provincial Municipal Consolidated 30,467.90 51.34 62.25 10.90 24,858.63 41.89 65.93 8.89 4,015.08 6.77 51.39 1.44 59,341.62 100.00 62.82 21.23 29,677.79 50.14 60.42 11.05 25,488.80 43.06 65.23 9.49 4,027.23 6.80 51.17 1.50 59,193.83 100.00 61.62 22.03 Source: analysis based on data from the Directorate of Consolidated Expenditure According to the classification used by the Directorate of Consolidated Social Expenditure (DGSC), GPSC can be broken down into the following functions: Education, Culture, and Science and Technology; Health; Fresh Water and Sewerage; Housing and Urbanism; Social Development and Assistance; Social Security; Labor and Other Urban Services. The most relevant functions in budgetary terms are Social Security, Health and Education, which concentrate more than 80% of GPSC. Consolidated Social Public Expenditure by Function, 2000-2001 In millions of pesos of 2001 and in percentages 2000 Purpose In millions of $ of 2001 Education, Cultura, Science and Technology 14,000.49 13,696.97 Health 272.66 Fresh Water and Sewerage 1,076.33 Housing and Tourism 3.355,32 Social Assistance and Development 2001 % Structure 23.59 23.08 0.46 1.81 5.65 In millions of $ of 2001 14,034.47 13,656.31 238.06 1,082.01 3,305.71 % Structure 23.71 23.07 0.40 1.83 5.58 It also includes the Federal Health Program (PROFE) – that is to say, expenditure allocated to medical assistance for non-Contributive pension beneficiaries (PNC)?? – and expenditure on health “Public Expenditure on Human Development in Argentina.” By Damián Bonari, Marcelo Becerra and Ariel Fiszbein. 4 World Bank Office for Argentina, Chile, Paraguay and Uruguay –Working Paper N.03/04 service providers’ infrastructure and equipment. As in the case of education services, it includes policy, coordination and regulation actions to ensure that services will be adequately provided, for e.g. prevention of AIDS and specific diseases and risks. The main difference with the health expenditure included in GPSC is that expenditure executed by social security agents is excluded, and in this document, it is considered expenditure on Social Insurance. The other two sectors of GPDH correspond to Social Assistance and Social Insurance. The former comprises programs that grant monetary and non-monetary benefits, as well as the administrative expenditure of the social development and labour ministries, which are the main executors of these programs. On the other hand, Social Insurance includes expenditure from money transfers – retirement payments, pensions, family benefits and unemployment insurance - and health insurance for the beneficiaries of different social security regimes in force in the country, including PAMI and provincial programs.vi It is worth noting that the traditional distinction between “contributive” and “non-contributive” programs represents the difference between Social Assistance and Social Insurance only partially, as part of the Social Insurance expenditure is financed by the same general treasury resources as is Social Assistance expenditure. The distinction is mainly institutional: social insurance benefits are derived from a legal right that is generally granted as a result of a labor relationship, whereas social assistance benefits are derived from a decision of the State based on wider eligibility criteria. Main differences in the classification of GPSC and GPDH Program GPSC GPDH Education and training Include as expenditure in Exclude provide by Ministry of education Interior and Ministry of Defence Science and technology Include Exclude Culture Include Exclude Scholarships Include as expenditure in Include as expenditure in education Social Assistance Housing and Potable Water Health Insurance Include as health Include as social insurance Table 1 summarizes the main figures of the GPDH classification adopted. The sectoral composition reflects that over 60% of expenditure corresponds to Social Insurance and almost 25% to Education, while percentages for Health and Social Assistance are much lower. This composition remained relatively stable during the 2000-2001 period, but, as it will be analysed later on, important changes are observed in the post-convertibility period. “Public Expenditure on Human Development in Argentina.” By Damián Bonari, Marcelo Becerra and Ariel Fiszbein. 5 World Bank Office for Argentina, Chile, Paraguay and Uruguay –Working Paper N.03/04 Table 1 Public Expenditure on Human Development by Sector, 2000-2001 In millions of pesos of 2001, as a percentage of GDP and in percentage structure 2000 Sector Education Health Social Assistance Social Insurances Total In millions of $ of 2001 12,000.54 4,325.64 3,187.20 32,298.17 51,811.55 As a % of GDP 4.29 1.55 1.14 11.56 18.54 2001 % Structure 23.16 8.35 6.15 62.34 100.00 In millions of $ of 2001 12,185.42 4,371.50 3,252.54 31,916.33 51,725.79 As a % of GDP 4.54 1.63 1.21 11.88 19.25 % Structure 23.56 8.45 6.29 61.70 100.00 Source: analysis based on data from the Directorate of Consolidated Social Expenditure Box 2 Considerations on Social Security Health Insurers Expenditure Considering Social Security Health Insurers (including PAMI) as public expenditure on human development deserves a methodological clarification since it is not executed by a state entity and it is not included in the budget, as the rest of the social programs included in public expenditure. This category, which could be called “quasi” public expenditure, presents characteristics by which it should be included as public expenditure. In the case of social security health insurers, there are three important aspects: (i) compulsory provision: all formal workers have the right to be provided services by social security health insurers (health) and by law, both employers and employees are obliged to contribute a percentage of their gross salaries. Therefore, it is an insurance that is regulated by the State, who delegates its execution to a private entity and lets employees choose among the providers in this system; (ii) collection: the collection of personal and employers’ contributions is performed by an official collection agency, the AFIP; (iii) insurance is based on a solidarity criterion: although each employee can choose among the health insurers of the system, there is not a relation between the contributions made and the services provided, as the former are distributed among contributors of different salary level and therefore, of different contribution level, following a solidarity criterion – all of them receive the same service package. Recording this social insurance as public expenditure is also validated by international methodology, typically the methodology of the International Monetary Fund. In the case of Argentina, there are two other types of insurance that would also belong to this “quasi” public expenditure category: expenditure on retirement annuities and pensions from the fully funded system (expenditure of AFJPs) and expenditure on the insurances of labor risk insurance companies (expenditure of ART companies). These two insurances are not officially recorded as social expenditure in Argentina yet, although they will be soon included in social “Public Expenditure on Human Development in Argentina.” By Damián Bonari, Marcelo Becerra and Ariel Fiszbein. 6 World Bank Office for Argentina, Chile, Paraguay and Uruguay –Working Paper N.03/04 I.2. Responsibility of the Different Government Levels Responsibility for executing and financing GPDH, once municipalities are excluded, is shared by the National government and the provinces.vii The national government is in charge of defining and coordinating health, education and social assistance public policies, and of financing national universities. It designs and finances health care and prevention, education, poverty reduction and social vulnerability programs. As a result of pacts signed between the National government and the provinces, among other reasons, expenditure on retirement funds and pensions is mainly centralized at national level. The process of transferring provincial retirement funds to the Integrated Retirement and Pension System (SIJP) was performed in 1994 and 1996; 11 of the 24 provinces have already completed the transfer. The national government is also responsible for administering and regulating family benefits, unemployment insurance, PAMI and social security health insurers. Provincial governments are responsible for financing and administering public health and education services. In 1992 it was decided that the decentralization process of non-university public education and health had to be completed by transferring most secondary education and health institutions to the provinces. Concerning Social Insurance, as it is inferred from the previous paragraph, 13 provinces have kept their social security systems, and all of them have their own health insurance system for civil servants. Additionally, provinces finance and execute their own social assistance programs. Next, GPDH is presented from the point of view of execution. This implies that fund transfers to the provinces are discounted from the national government. Therefore, expenditure on programs that the national government finances through transfers to provincial governments is included in provincial expenditure. Conditional transfers from the national government to the provinces – those allocated to the execution of specific programs - are shown separately. In 2000/2001viii GPDH execution was distributed in similar magnitudes between the national government and the provinces; on average, the national government executes 55.48% and provincial governments, the remaining 44.52%. Of this percentage, on average the national government finances 5.23% by means of conditional transfers; the rest is financed with resources generated by the provinces –provincial and co-participation revenue, among others– and unconditional national transfers. Table 2 Public Expenditure on Human Development Executed by the Provinces, and Share in Conditional Transfers, 2000-2001 In percentage Sector Education Health Social Assistance Social Insurances Total 2000 Conditional Provincial Transfers / Execution Provincial Execution 85.69 8.40 88.25 0.02 65.20 5.10 20.26 2.60 43.86 5.43 2001 Conditional Provincial Transfers / Execution Provincial Execution 86.58 7.69 89.43 0.02 63.70 7.07 21.44 2.14 45.19 5.02 “Public Expenditure on Human Development in Argentina.” By Damián Bonari, Marcelo Becerra and Ariel Fiszbein. 7 World Bank Office for Argentina, Chile, Paraguay and Uruguay –Working Paper N.03/04 Source: analysis based on data from the Directorate of Consolidated Social Expenditure Education. The Argentine legal framework establishes that provincial governments are responsible for financing, administering and supervising all levels of non-university education, and for implementing compensatory policies and infrastructure programs. On the other hand, the national government is responsible for financing and defining basic education compensatory actions -aimed at mitigating regional or social imbalances-, for financing and regulating the national university system, and for coordinating, supervising, assessing and providing technical assistance to ensure the quality of basic education.ix During 2000/2001, the expenditure on Education executed by the provinces reached an average of 86.13% of the national-provincial consolidated expenditure, mainly due to teachers’ salaries, which represent 89.97% of provincial expenditure. National government execution –which represents 13.86%– almost entirely corresponds to national universities (92.21%). Besides, the national government finances 8.05% of provincial expenditure through conditional transfers. During 2000/2001, such transfers were mainly used to finance the National Teacher Incentive Fund (FONID), as opposed to what happened in the nineties, when they were allocated to infrastructure programs and other compensatory actions, such as the Educational Social Plan (Plan Social Educativo) and the Federal Education Pact (Pacto Federal Educativo). Table 3 Public Expenditure on Education, 2000-2001 In millions of pesos of 2001 Item 2000 National Provincial Total 1,636.32 9,574.84 11,211.17 14.43 9,229.29 9,243.72 7,891.38 7,891.38 14.43 14.43 1,337.91 1,337.91 146.95 146.95 54.96 198.61 253.56 1,566.94 1,566.94 50.98 636.41 687.39 30.54 560.39 590.93 10.06 3.33 6.72 15.04 15.04 Provision of Education Services Teachers’ Salaries Public Schools Transfers to Tertiary Institutes Transfers to Private Sector Goods and Services / Maintenance Infrastructure and Equipment Transfers to Universities Policy, Coordination and Regulation Actions Central Administration Quality Information and Assessment Curriculum Management and Training Strengthening of Provincial Educational Administration 6.29 (PREGASE, PRISE and PRODYMES) Decentralized Entities (INAP, CONEAU, etc.) 10.82 Other Programs 30.33 Total 1,717.63 2001 National Provincial Total 1,563.54 9,845.89 11,409.44 10.97 9,516.60 9,527.57 8,112.28 8,112.28 10.97 10.97 1,404.32 1,404.32 172.69 172.69 28.74 156.60 185.34 1,523.84 1,523.84 49.81 655.29 705.10 29.72 595.60 625.33 9.49 3.73 5.77 6.47 27.22 33.69 54.26 60.55 3.90 26.70 30.60 71.65 10,282.91 10.82 101.99 12,000.54 5.99 21.75 1,635.10 49.13 10,550.32 5.99 70.88 12,185.42 Source: analysis based on data from the Directorate of Consolidated Social Expenditure “Public Expenditure on Human Development in Argentina.” By Damián Bonari, Marcelo Becerra and Ariel Fiszbein. 8 World Bank Office for Argentina, Chile, Paraguay and Uruguay –Working Paper N.03/04 Table 4 National Government Conditional Transfers to Education, 2000-2001 In millions of pesos of 2001 Item Provision of Education Services Teachers’ Salaries Public Schools Transfers to Tertiary Institutes Transfers to Private Sector Goods and Services / Maintenance Infrastructure and Equipment Transfers to Universities Policy, Coordination and Regulation Actions Central Administration Quality Information and Assessment Curriculum Management and Training Strengthening of Provincial Educational Administration (PREGASE, PRISE y PRODYMES) Decentralized Entities (INAP, CONEAU, etc.) Other Programs Total 2000 2001 822.52 803.49 649.04 154.46 19.02 24.20 5.99 - 774.67 714.34 660.00 54.34 60.32 31.63 2.41 24.85 18.22 4.37 17.00 863.71 5.29 811.59 Transfers to tertiary institutes are used to finance the salaries of provincial tertiary teachers. Out of the total transfers accrued by/ transferencias devengadas del?? FONID in el 2001, only $330 million were paid. The rest was paid during 2002. Source: analysis based on data from the Directorate of Consolidated Social Expenditure Health. Provincial governments are responsible for financing, managing and supervising health services provided by the public network of health providers –hospitals, health centers and other services such as ambulatory care– and implementing specific public health programs financed by the national government, among others. The national government is in charge of epidemiologic prevention and control, coordinating and financing maternal-child care and supporting provinces with health emergency, mainly by providing HIV/AIDS drugs and basic medicines for primary care. During 2000/2001, the composition by government level of the health sector was similar to that of Education: on average, provincial governments executed 88.84% of expenditures, of which only 2.12% were financed by the national government through conditional transfers. Provincial health service providers concentrate more than 85% of the total expenditure of the provinces. The rest is mainly distributed between provincial programs and policy, coordination and regulation actions. Expenditure on the salaries of health services providers and of the central administration concentrates more than 90% of provincial expenditure. At national level, 68.08% of the expenditure on Health corresponds to health providers and goods and inputs contributed by the national government, 12.04% corresponds to public health programs and the rest to policy, coordination and regulation actions, which comprise expenditure on central administration. “Public Expenditure on Human Development in Argentina.” By Damián Bonari, Marcelo Becerra and Ariel Fiszbein. 9 World Bank Office for Argentina, Chile, Paraguay and Uruguay –Working Paper N.03/04 Table 5 Public Expenditure on Health, 2000-2001x In millions of pesos of 2001 Item Provision of Health Care Providers (hospitals and health care centers) Salaries, Inputs and Maintenance Assistance to PNC Beneficiaries Goods and Inputs Contributed by National Gov. Fight against AIDS and Sexually Transmitted Diseases Infrastructure and Equipment Policy, Coordination and Regulation Actions Central Administration (mainly salaries) Training for Health and Assistance Human Resources Health Policy Planning, Control, Regulation And Enforcement/Fiscalización?? Support for Public Health Studies and Research Health Sector Reform Public Health Programs Fight against AIDS and Sexually Transmitted Diseases Prevention and Control of Special Diseases And Risks (including immunizations, VIGI-A, etc.) Maternal & Child Care Coverage for Sanitary Emergencies Other Programs Total 2000 National Provincial 356.07 3,323.39 303.62 3,254.24 218.70 3,209.39 84.91 44.86 52.46 52.46 - Total 3,679.46 3,557.86 3,428.09 129.77 52.46 2001 National Provincial 304.49 3,453.76 254.75 3,387.70 198.24 3,342.66 56.51 45.04 49.74 0.09 Total 3,758.25 3,642.45 3,540.90 101.56 49.82 52.46 49.74 0.09 49.82 101.81 65.58 69.15 350.37 289.81 69.15 452.18 355.39 91.10 50.70 65.97 364.52 305.94 65.97 455.61 356.63 23.51 47.39 70.90 20.60 46.12 66.72 4.83 4.13 8.96 6.43 4.80 11.23 7.90 50.37 9.04 143.63 16.93 193.99 5.29 8.07 66.47 7.66 91.17 5.29 15.74 157.64 3.24 0.57 3.81 3.41 0.76 4.16 27.18 12.14 39.32 38.81 13.12 51.93 10.35 1.22 8.38 508.25 47.79 9.86 73.26 3,817.39 58.14 11.09 81.63 4,325.64 10.46 1.26 12.54 462.05 23.62 12.80 40.87 3,909.44 34.08 14.06 53.41 4,371.50 Source: analysis based on data from the Directorate of Consolidated Social Expenditure It should be noted that during this period, national government conditional transfers to the health sector were fewer than those for education services –even without considering FONID. In principle, this is an important point as it somehow predefines potential instruments by means of which the national government can orientate health policies at provincial level. “Public Expenditure on Human Development in Argentina.” By Damián Bonari, Marcelo Becerra and Ariel 10 Fiszbein. World Bank Office for Argentina, Chile, Paraguay and Uruguay –Working Paper N.03/04 Table 6 National Government Conditional Transfers to Health, 2000-2001 In millions of pesos of 2001 Item Provision of Health Care Providers (hospitals and health care centers) Salaries, Inputs and Maintenance Assistance to PNC Beneficiaries Goods and Inputs Contributed by National Gov. Fight against AIDS and Sexually Transmitted Diseases Infrastructure and Equipment Policy, Coordination and Regulation Actions Central Administration (mainly salaries) Training for Health and Assistance Human Resources Health Policy Planning, Control, Regulation And Enforcement/Fiscalización?? Support for Public Health Studies and Research Health Sector Reform Public Health Programs Fight against AIDS and Sexually Transmitted Diseases Prevention and Control of Special Diseases And Risks (Including Immunizations, VIGI-A, etc.) Maternal & Child Care Coverage for Sanitary Emergencies Other Programs Total 2000 44.86 44.86 44.86 - 2001 45.13 45.04 45.04 0.08 - 0.08 - 1.31 1.31 - - - - 49.89 22.73 - - 6.08 3.65 43.81 94.75 19.00 0.08 69.17 Source: analysis based on data from the Directorate of Consolidated Social Expenditure Social Assistance. Although the provinces have a preponderant role in the execution of expenditure on Social Assistance, the share of the national level is significantly larger than in the case of Health and Education. From a conceptual point of view this is not surprising, as the expectation is that the greatest redistributive effort is to be made by the national government. This item includes monetary and non-monetary transfer programs (transfers in kind). In the case of monetary transfers, the national government share (54.77%) is slightly higher than the share of the provinces (45.23%), while the latter are the main executors of expenditure on programs that provide benefits in kind (90.29%), among which food programs stand out. The balance between monetary and non-monetary transfers seems to be slightly slanted in favor of the former, mainly on account of the relative share of PNC. During this period, there were a series of programs with monetary transfers, also at provincial level. “Public Expenditure on Human Development in Argentina.” By Damián Bonari, Marcelo Becerra and Ariel 11 Fiszbein. World Bank Office for Argentina, Chile, Paraguay and Uruguay –Working Paper N.03/04 Table 7 Public Expenditure on Social Assistance, 2000-2001xi In millions of pesos of 2001 Item Social Programs / Personal Monetary Transfers Employment Programs Jefes/as de Hogar Trabajar Labor Emergencia Plan (PEL) Financial Assistance for Social Expenditure Provincial Programs Scholarships National Education Scholarships Polimodal Scholarships, Buenos Aires Province Non-Contributive Pensions Other Programs Human Development Income (IDH) Solidaridad Provincial Programs Non-Monetary Social Programs Food Programs School Kitchens Unidos/Food Emergency Program (PEA) Community Kitchens (FOPAR) Provincial Food Programs Prohuerta Others Central Administration Ministry of Social Development Ministry of Labor Total 2000 National Provincial Total 2001 National Provincial Total 905.59 799.61 1,705.20 998.36 771.00 1,769.36 187.67 88.21 99.45 55.87 55.87 661.78 0.28 0.28 127.68 44.97 - 226.66 226.66 162.36 162.36 137.35 273.23 273.23 1,121.11 689.50 280.37 414.33 88.21 99.45 226.66 218.23 55.87 162.36 799.12 273.51 0.28 273.23 1,248.80 734.47 280.37 177.53 41.98 135.55 45.16 45.16 755.75 19.92 19.92 115.08 30.09 - 335.45 335.45 27.93 27.93 140.64 266.98 266.98 1,135.38 671.50 266.49 512.98 41.98 135.55 335.45 73.09 45.16 27.93 896.39 286.91 19.92 266.98 1,250.45 701.59 266.49 44.97 23.19 409.13 514.33 233.21 162.20 71.01 3,187.20 6.90 84.99 67.13 51.79 15.34 1,180.57 44.97 82.72 75.95 60.68 15.27 1,109.22 409.13 431.61 157.26 101.52 55.74 2,077.98 405.01 463.88 165.59 108.11 57.48 2,071.97 23.19 405.01 6.90 548.87 232.72 159.90 72.82 3,252.54 Source: analysis based on data from the Directorate of Consolidated Social Expenditure “Public Expenditure on Human Development in Argentina.” By Damián Bonari, Marcelo Becerra and Ariel 12 Fiszbein. World Bank Office for Argentina, Chile, Paraguay and Uruguay –Working Paper N.03/04 Table 8 National Government Conditional Transfers to Social Assistance, 2000-2001 In millions of pesos of 2001 Item Social Programs / Personal Monetary Transfers Employment Programs Jefes/as de Hogar Trabajar Labor Emergency Plan (PEL) Financial Assistance for Social Expenditure Provincial Programs Scholarships National Education Scholarships Polimodal Scholarships, Buenos Aires Province Non-Contributive Pensions Other Programs Human Development Income (IDH) Solidaridad Provincial Programs Non-Monetary Social Programs Food Programs School Kitchens Unidos/ Food Emergency Program (PEA) Community Kitchens (FOPAR) Provincial Food Programs Prohuerta Others Central Administration Ministry of Social Development Ministry of Labor Total 2000 2001 0.71 87.17 0.71 0.71 105.17 1.55 - 87.17 1.37 85.80 58.50 4.19 - 1.55 4.19 103.62 105.88 54.31 0.80 0.80 146.48 Source: analysis based on data from the Directorate of Consolidated Social Expenditure Social Insurance. The main items included in this sector are retirement and pension payments, which represent 63.19% of the total, and the expenditure executed by diverse health insurances, which concentrate 27.09%. As opposed to the other sectors, for Social Insurance the national government executed nearly 80% of the 2000/2001expenditure; this is mainly due to the weight of national retirement and pension payments, which represent 49.52% of the total expenditure on this sector. Besides, it finances 2.37% of provincial expenditures through conditional transfers, mostly allocated to provincial social security fundsxii. “Public Expenditure on Human Development in Argentina.” By Damián Bonari, Marcelo Becerra and Ariel 13 Fiszbein. World Bank Office for Argentina, Chile, Paraguay and Uruguay –Working Paper N.03/04 Table 9 Public Expenditure on Social Insurance, 2000-2001 In millions of pesos of 2001 Item Administration of ANSeS, SSS, etc. Retirement and Pensions National (including ex-provincial funds) Provincial Subsidies Family Benefits Unemployment Insurance PAM I Social Security Health Insurers National Provincial Total 2000 National Provincial Total 288.12 87.02 375.14 16,107.83 4,259.60 20,367.43 16,107.83 16,107.83 4,259.60 4,259.60 623.18 623.18 1,834.04 1,834.04 297.15 297.15 2,521.20 2,521.20 4,082.28 2,197.74 6,280.02 4,082.28 4,082.28 2,197.74 2,197.74 25,753.81 6,544.36 32,298.17 2001 National Provincial 249.11 89.09 15,690.20 4,520.36 15,690.20 4,520.36 609.00 1,807.95 353.70 2,389.23 3,973.84 2,233.85 3,973.84 2,233.85 25,073.04 6,843.30 Total 338.20 20,210.56 15,690.20 4,520.36 609.00 1,807.95 353.70 2,389.23 6,207.69 3,973.84 2,233.85 31,916.33 Source: analysis based on data from the Directorate of Consolidated Social Expenditure Table 10 National Government Conditional Transfers to Social Insurance, 2000-2001 In millions of pesos of 2001 Item Administration of ANSeS, SSS, etc. Retirement and Pensions National (including ex-provincial funds) Provincial Subsidies Family Benefits Unemployment Insurance PAM ISocial Security Health Insurers National Provincial 2000 165.26 165.26 5.02 5.02 2001 142.27 142.27 4.09 4.09 Total 170.28 146.35 Conditional transfers to social security health insurers are transferred from PROFE to the social security health insurer of Salta province. Source: analysis based on data from the Directorate of Consolidated Social Expenditure I.3. Financing of Public Expenditure on Human Development Public Expenditure on Human Development (GPDH) is financed by three funding sources: the national treasury, provincial treasuries and payments and contributions from employers and individuals.xiii Fiscal expenditure is public expenditure financed with resources from the national and provincial treasuries. This concept provides a more accurate measurement of the resources that the State allocates to social policy.xiv “Public Expenditure on Human Development in Argentina.” By Damián Bonari, Marcelo Becerra and Ariel 14 Fiszbein. World Bank Office for Argentina, Chile, Paraguay and Uruguay –Working Paper N.03/04 During 2000/2001, fiscal expenditure represented 59.55% of GPDH on average –26.84% from the national treasury and 32.71% from provincial treasuries. The rest corresponds to expenditure financed with payments and contributions. The breakdown by government level shows that for the national government fiscal expenditure represents 48.40% on average, while in the provinces it reaches 73.47%. The analysis by sector reflects that Social Insurance is the only sector where payments and contributions finance part of the expenditure –their share reaches 65.21%– as Education, Health and Social Assistance are totally financed by the treasuries. However, Social Insurance financing by means of payments and contributions reaches 91.6% in the provinces, and 58.31% in the national government. This situation responds to various factors: in the provinces, expenditure on Social Insurance is only allocated to retirement and pension payments and social security health insurers; while in the national government, it also includes family benefits, unemployment insurance, health insurance for retirees and pensioners (PAMI) and subsidiesxv. National social security health insurers are regulated by the national government, but they are totally financed with payments and contributions; instead, 58.94% of resources allocated to retirement and pension payments come from the national treasury.xvi In summary, the financing structure of Social Insurance is complex: the weight of the national fiscal expenditure reaches 32.98% of the total, and covers 46.12% of retirement and pension payments, 75.12% of administration costs, 100% of subsidies, 7.62% of unemployment insurance and 17.30% of PAMI. “Public Expenditure on Human Development in Argentina.” By Damián Bonari, Marcelo Becerra and Ariel 15 Fiszbein. World Bank Office for Argentina, Chile, Paraguay and Uruguay –Working Paper N.03/04 Table 11 Composition of Public Expenditure on Human Development Financing, 2000-2001 In millions of pesos of 2001 Sector 2000 Education Health Social Assistance Social Insurance Administration Retirement and Pensions Subsidies Family Benefits Unemployment Insurance PAM Insurers Health I Total 2001 Education Health Social Assistance Social Insurance Administration Retirement and Pensions Subsidies Family Benefits Unemployment Insurance PAM Health Insurers I Total National Fiscal Payments Total Expend. & Contrib. Provincial Fiscal Payments Total Expend. & Contrib. Total Fiscal Payments Total Expend. & Contrib. 1,717.63 508.25 1,109.22 10,273.52 288.12 8,931.86 623.18 430.35 13,608.63 15,480.29 7,175.97 1,834.04 297.15 2,090.85 4,082.28 15,480.29 1,717.63 508.25 1,109.22 25,753.81 288.12 16,107.83 623.18 1,834.04 297.15 2,521.20 4,082.28 29,088.92 10,282.91 3,817.39 2,077.98 558.40 87.02 466.36 5.02 16,736.67 5,985.97 3,793.25 2,192.72 5,985.97 10,282.91 3,817.39 2,077.98 6,544.36 87.02 4,259.60 2,197.74 22,722.64 12,000.54 4,325.64 3,187.20 10,831.92 375.14 9,398.22 623.18 430.35 5.02 30,345.30 21,466.26 10,969.21 1,834.04 297.15 2,090.85 6,275.00 21,466.26 12,000.54 4,325.64 3,187.20 32,298.17 375.14 20,367.43 623.18 1,834.04 297.15 2,521.20 6,280.02 51,811.55 1,635.10 462.05 1,180.57 10,902.04 249.11 9,575.38 609.00 49.60 418.94 14,179.77 14,171.00 6,114.82 1,807.95 304.10 1,970.29 3,973.84 14,171.00 1,635.10 462.05 1,180.57 25,073.04 249.11 15,690.20 609.00 1,807.95 353.70 2,389.23 3,973.84 28,350.77 10,550.32 3,909.44 2,071.97 599.26 89.09 506.08 4.09 17,130.99 6,244.04 4,014.28 2,229.76 6,244.04 10,550.32 3,909.44 2,071.97 6,843.30 89.09 4,520.36 2,233.85 23,375.03 12,185.42 4,371.50 3,252.54 11,501.29 338.20 10,081.46 609.00 49.60 418.94 4.09 31,310.75 20,415.04 10,129.10 1,807.95 304.10 1,970.29 6,203.60 20,415.04 12,185.42 4,371.50 3,252.54 31,916.33 338.20 20,210.56 609.00 1,807.95 353.70 2,389.23 6,207.69 51,725.79 The fiscal expenditure of PAMI includes resources that are self-generated by the institution, although they represent a minor percentage. Source: analysis based on data from the Directorate of Consolidated Social Expenditure Concerning the entities that manage GPDH, we observe that 61.70% corresponds to social insurance administration agencies. At national level, the Social Security National Administration Agency (ANSES) administers retirement and pension payments, family benefits, unemployment insurance and subsidies. On the other hand, the Health Insurance Superintendence (SSS) supervises the transfers of payments and contributions to social security health insurers through the revenue collection agency, the Public Revenue Federal Administration Agency (AFIP). Concerning provinces, in those which have not transferred their social security funds yet there is an administration agency for health insurance and the retirement and pension system. “Public Expenditure on Human Development in Argentina.” By Damián Bonari, Marcelo Becerra and Ariel 16 Fiszbein. World Bank Office for Argentina, Chile, Paraguay and Uruguay –Working Paper N.03/04 Table 12 Public Expenditure on Human Development Financing Composition by Administration Agency, 2001 In millions of pesos of 2001 Administration Agency National Government – Central Administration Provincial Governments – Central Administration Social Insurance Agencies Nacional Social Insurance Agency (ANSeS) Administration Retirement and Pensions Family Benefits Unemployment Insurance Subsidies Provincial Retirement and Pension Agencies (Funds) Administration Retirement and Pensions Health Insurance Agents (Social Security Health Insurers) Social Security Health Insurers (National System) Provincial Health Insurers PAM TotalI National Treasury 3,277.73 1,027.23 11,048.39 10,483.10 249.11 9,575.38 49.60 609.00 142.27 142.27 423.03 4.09 418.94 15,353.35 Provincial Treasuries 15,504.49 452.90 - 452.90 89.09 363.81 - 15,957.40 Payments and Contributions (Workers and Employers) 20,415.04 8,226.87 6,114.82 1,807.95 304.10 4,014.28 4,014.28 8,173.89 3,973.84 2,229.76 1,970.29 20,415.04 Total 3,277.73 16,531.73 31,916.33 18,709.96 249.11 15,690.20 1,807.95 353.70 609.00 4,609.45 89.09 4,520.36 8,596.92 3,973.84 2,233.85 2,389.23 51,725.79 Conditional transfers from the national government to the provinces are recorded in the “national treasury” column. Source: analysis based on data from the Directorate of Consolidated Social Expenditure II. PUBLIC EXPENDITURE ON HUMAN DEVELOPMENT IN THE POST-CONVERTIBILITY PERIOD The post-convertibility period generated changes in GPDH composition and level. On the one hand, the magnitude of the social crisis required emergency responses on the part of the State which generated increases in certain items. On the other, the rise in the level of prices implied a fall in salaries and retirement payments in real terms, which, to a great extent, remained constant in nominal terms. II.1. Changes at National Levelxvii “Public Expenditure on Human Development in Argentina.” By Damián Bonari, Marcelo Becerra and Ariel 17 Fiszbein. World Bank Office for Argentina, Chile, Paraguay and Uruguay –Working Paper N.03/04 At national level, the post-convertibility period can be characterized by two major changes: (i) a significant increase of resources allocated to Social Assistance (35.06% in real terms), particularly to Social Assistance executed by the national government or “net expenditures” (97% in real terms) and to some health programs, in the framework of the social emergency program in both cases; and (ii) the freeze on all remaining expenditures in nominal terms, mainly retirement and pension payments, and salaries. As a consequence, an important change in GPDH composition took place in the context of a strong downfall both in real terms and in relation to GDP. In particular, national government expenditure fell 29.16% in real terms and 7.58% in terms of GDP –from 11.39% in 2001 to 10.53% in 2002. Box 3 Fiscal Relations between the National Government and the Provinces During the last decades, fiscal relations between the National Government and the provinces were characterized by continuing modifications to primary and secondary allocation and distribution rules in the context of successive fiscal pacts. This has generated an extremely complex system formed by different types of transfers and fund sources. In this scheme, provincial resources of national origin have come from two types of sources: the Federal Co-participation Tax Regime and a set of specific laws that consist in the total or partial commitment of the revenue generated by certain taxes, which is allocated to specific purposes. Among these laws, we can mention the Buenos Aires Urban Conglomerate Fund (Fondo del Conurbano Bonaerense) and Basic Social Infrastructure Works, funded by the income tax and aimed at infrastructure works of social purpose; FONAVI, which is aimed at housing; and FEDEI, which is aimed at electric power generation, road and infrastructure works, among others. The Federal Pact (Compromiso Federal) of 1999 –Law N° 25,235– established that the provinces “cannot allocate funds assigned to specific purposes by special laws, up to 50% of their value.” Later, in 2000, the Growth and Fiscal Order Pact (Compromiso para el Crecimiento y la Disciplina Fiscal) –Law N° 25,400– ratified this provision. Likewise, the Agreement of the National Government and the Provinces on Financial Relation and Basis for a Federal Co-Participation Tax Regime (Acuerdo Nación-Provincias sobre Relación Financiera y Bases de un Régimen de Coparticipación Federal de Impuestos) of February 2002 raised the free availability of these resources to 100% (Law N° 25,570). In this work, the special co participation regimes of the 2002-2003 period are “Public Expenditure on Human Development in Argentina.” By Damián Bonari, Marcelo Becerra and Ariel included in total national government expenditures under the function that Fiszbein. corresponds to the item for which they were originally allocated, in line with the national budget presentation. However, it should be taken into account that transfers to these items are not necessarily allocated to the functions where they are aimed to. I the GPDH there is a portion of total expenditures that appears under Social 18 World Bank Office for Argentina, Chile, Paraguay and Uruguay –Working Paper N.03/04 Box 3 (Cont.) Public Expenditure on Social Assistance, 2002-2003 In millions of pesos de 2001 Year Total Expenditures 2002* 2003** 3,270.54 3,938.98 Net Expenditues 2,331.27 2,872.33 Income Tax 1 739.57 807.86 Conditional Transfers 199.71 258.79 (*) Provisional accrual, (**) Initial credit (1) a) 4% of income tax revenue is distributed among all provincial jurisdictions, excluding Buenos Aires province, according to the Basic Unfulfilled Needs index, and b) 10% of revenues up to an amount of $650 millions per year is allocated to Buenos Aires province. If this 10% exceeds this amount, the surplus is distributed among the rest of the provinces. Source: analysis based on data from the Directorate of Consolidated Social Expenditure The analysis by sectors indicates that in 2002 the share of national expenditure on Social Assistance increased from 7.91% to 15.08% of total GPDH. Likewise, the relative weight of Health went from 1.74% to 2.12%. Conversely, Social Insurance fell from 82.36% to 77.61% and Education decreased from 7.99% to 5.20%. In 2003, total national GPDH kept similar levels to 2002 in terms of GDP (10.5%). However, concerning GPDH composition, the relative weight of expenditure on Social Assistance continued increasing to reach 18.04%, Health increased its share to almost 3% and Education to 6%, while expenditure on Social Insurance lost share and fell to 73.01%, thus compensating the rise in the other sectors. The relative importance of each sector was thus modified, although Social Insurance remained preponderant, sharing three quarters of GPDH. In the case of net expenditures (national expenditure net of transfers to the provinces), the decrease was slightly lower- 27.75% in real terms. This reflects a fall in transfers to the provinces, which decreased 46.79%, due to a stronger intervention of the national government through more participation in social policy execution on account of the socio-economic emergency. In 2003, according to the initial credit, net expenditures decreased 1.29% while total expenditures increased 1%, showing a slight rise in transfers. “Public Expenditure on Human Development in Argentina.” By Damián Bonari, Marcelo Becerra and Ariel 19 Fiszbein. World Bank Office for Argentina, Chile, Paraguay and Uruguay –Working Paper N.03/04 Table 13 National Government Public Expenditure on Human Development, 2001-2003 (a) Total and net expenditures in millions of pesos of 2001 2001 Sector Education Health Social Assistance Social Insurance Total Total Expend. 2,446.69 531.22 2,421.59 25,215.30 30,614.80 Net Expend. 2002* Total Net Expend. Expend. 1,635.10 462.05 1,180.57 25,073.04 28,350.77 1.127.31 459.05 3,270.54 16,828.87 21,685.77 1,070.99 404.95 2,331.27 16,673.81 20,481.03 2003** Total Net Expend. Expend. 1,325.71 629.73 3,938.98 15,945.81 21,840.23 1,086.96 565.51 2,872.33 15,693.95 20,218.76 (b) As a percentage of GDP 2001 Sector Education Health Social Assistance Social Insurance Total Total Expend. 2002* Net Expend. 0.91 0.20 0.90 9.38 11.39 0.61 0.17 0.44 9.33 10.55 Total Expend. Net Expend. 0.55 0.22 1.59 8.17 10.53 0.52 0.20 1.13 8.10 9.95 2003** Total Net Expend. Expend. 0.65 0.31 1.92 7.77 10.65 0.53 0.28 1.40 7.65 9.86 c) Percentage structure 2001 Sector Education Health Social Assistance Social Insurance Total Total Expend. 7.99 1.74 7.91 82.36 100.00 2002* Net Expend. 5.77 1.63 4.16 88.44 100.00 Total Expend. 5.20 2.12 15.08 77.60 100.00 2003** Net Expend. 5.23 1.98 11.38 81.41 100.00 Total Expend. 6.07 2.88 18.04 73.01 100.00 Net Expend. 5.38 2.80 14.21 77.62 100.00 (*) Provisional accrual, (**) Initial credit Source: analysis based on data from the Directorate of Consolidated Social Expenditure Education. In 2002, national government expenditure on Education fell 53.92% in real terms and 39.89% in terms of GDP, as total expenditures dropped from 0.91% to 0.55% of GDP, mainly due to the fact that FONID transfers to the provinces were not included in the budget. Instead, in 2003 an amount of $184.53 million of 2001 was included for FONID.xviii Both the inclusion of FONID in the budget and the increase of expenditure on national universities in nominal terms explain the total real increment of 17.60% of the Education sector in 2003. “Public Expenditure on Human Development in Argentina.” By Damián Bonari, Marcelo Becerra and Ariel 20 Fiszbein. World Bank Office for Argentina, Chile, Paraguay and Uruguay –Working Paper N.03/04 Table 14 National Government Public Expenditure on Education, 2001-2003 In millions of pesos of 2001 2001 Item Provision of Education Services Teachers’ Salaries Public Schools Transfers to Tertiary Institutes Transfers to Private Sector Goods and Services / Maintenance Infrastructure and Equipment Transfers to Universities Higher Education Development Policy, Coordination and Regulation Actions Central Administration Quality Information and Assessment Curriculum Management and Training Strengthening of Provincial Educational Administration (PREGASE, PRISE Y PRODYMES) Decentralized Entities (INAP, CONEAU, etc.) Other Programs Total 2002* 2003** Total Expend. 2,338.21 725.31 660.00 65.31 89.06 1,523.84 1,523.84 81.44 29.72 6.13 31.32 Net Expend. 1,563.54 10.97 10.97 28.74 1,523.84 1,523.84 49.81 29.72 3.73 6.47 Total Expend. 1,060.64 15.16 15.16 51.32 994.15 994.15 54.97 15.69 2.65 9.06 Net Expend. 1,018.18 6.14 6.14 17.89 994.15 994.15 44.56 15.69 1.91 2.59 Total Expend. 1,263.57 209.19 184.53 24.65 30.47 1,023.92 1,023.92 47.70 16.99 3.35 - Net Expend. 1,040.33 9.33 9.33 7.09 1,023.92 1,023.92 33.20 16.99 2.45 - 8.27 3.90 22.47 19.26 22.26 8.64 5.99 27.04 2,446.69 5.99 21.75 1,635.10 5.10 11.71 1,127.31 5.10 8.25 1,070.99 5.11 14.44 1,325.71 5.11 13.43 1,086.96 (*) Provisional accrual, (**) Initial credit Source: analysis based on data from the Directorate of Consolidated Social Expenditure Health. In 2002, national government expenditure on Health decreased 13.59% in real terms with respect to 2001; nevertheless, it slightly increased in terms of GDP, going from 0.20% to 0.22%. Those figures reveal several modifications in sectoral composition. On the one hand, there was a significant increase in real expenditure on public health programs in the context of the health emergency –Maternal and Child Care, and mainly Prevention and Control of Specific Diseases and Risks-. The increase in expenditure on these programs is due to larger coverage as well as to the increase in the prices of certain drugs and inputs –vaccines, among others– which rose beyond inflation. Conversely, expenditure on coordination and regulation actions and on health care for PNC beneficiaries decreased. In 2003 expenditure allocated to Health increased 37.18% in real terms. The most significant increases are recorded in Health Emergency programs (Remediar)xix and the Fight Against AIDS program. On the other hand, expenditure on health care for PNC beneficiaries grew 26.23% in real terms.xx Expenditure allocated to coordinating and regulating the sector remains the same in real terms, on account of the freeze on expenditure on personnel, its main component. “Public Expenditure on Human Development in Argentina.” By Damián Bonari, Marcelo Becerra and Ariel 21 Fiszbein. World Bank Office for Argentina, Chile, Paraguay and Uruguay –Working Paper N.03/04 Table 15 National Government Public Expenditure on Health, 2001-2003 In millions of pesos of 2001 2001 Item Provision of Health Care Providers (hospitals and health care centers) Salaries, Inputs and Maintenance Assistance to PNC Beneficiaries PNC Goods and Inputs contributed by National Gov. Fight against AIDS and Sexually Transmitted Diseases Health Emergency (Insumos Proaps/Remediar) Infrastructure and Equipment Policy, Coordination and Regulation Actions Central Administration (mainly salaries) Training for Health and Assistance Human Resources Health Policy Planning, Control, Regulation And Enforcement/ Fiscalización?? Support for Public Health Studies and Research Health Sector Reform Public Health Programs Fight against AIDS and Sexually Transmitted Diseases Prevention and Control of Specific Diseases and Risks including iimmunizations, VIGI-A, etc.) Maternal and Child Care Health Emergency Coverage Other Programs Total Total Expend. 2002* Net 2003** Expend. Total Expend. Net Expend. Total Expend. Net Expend. 349.62 299.80 198.24 101.56 49.82 304.49 254.75 198.24 56.51 49.74 255.84 194.86 144.73 50.13 60.98 218.89 165.11 144.73 20.38 53.78 431.35 208.90 145.62 63.28 222.44 391.29 169.40 145.62 23.78 221.89 49.82 49.74 49.59 48.96 103.86 103.31 - - 11.39 4.81 118.58 118.58 92.41 52.01 91.10 50.70 52.36 32.91 49.60 30.20 53.58 31.66 52.86 30.95 20.60 20.60 13.05 13.00 12.76 12.75 6.43 6.43 4.33 4.33 4.39 4.39 5.29 8.07 89.19 5.29 8.07 66.47 1.68 0.39 150.84 1.68 0.39 136.47 1.96 2.81 144.80 1.96 2.81 121.36 3.41 3.41 1.03 1.03 0.29 0.29 42.46 38.81 100.52 100.08 78.23 76.25 29.46 1.26 12.61 531.22 10.46 1.26 12.61 462.05 40.32 0.67 8.31 459.05 26.39 0.67 8.30 404.95 49.69 1.05 15.55 629.73 28.38 1.05 15.40 565.51 (*) Provisional accrual, (**) Initial credit Source: analysis based on data from the Directorate of Consolidated Social Expenditure Social Assistance. Expenditure on Social Assistance for 2002 increased 35.06% in real terms, due to the implementation of new employment and scholarship programs (monetary personal transfers) and of food programs (non-monetary transfers). Net expenditures on Social Assistance – excluding transfers to the provinces – increased 97% in real terms. The implementation of Plan Jefas y Jefes de Hogar Desocupados (Unemployed Heads of Households program) explains most of this increase: in 2002 it already represented 45.23% of national government expenditure on Social Assistance and 0.72% of GDP. Within income transfer programs, expenditure allocated to scholarships for school students and subsidies granted to poor families through the Human Development Income (IDH) program, called “Familias”, also grew significantly.xxi Expenditure allocated to scholarships almost tripled in real terms with respect to 2001 Expenditure on food programs rose abruptly in real terms –over eight times– mainly due to the inclusion of the Food Emergency Program (PEA), which in 2002 concentrated 70.66% of food programs. Expenditure on school kitchens, which was traditionally financed by the provinces, also stands out. National government participation in school kitchen financing allowed greater coverage and in 2002 represented approximately 17.54% of expenditure on food assistance. According to the 2003 budget, expenditure on this sector grows 20.44% in real terms. This is mainly due to increments in monetary transfer programs –expanded coverage and consequently, of expenditure on Plan Jefas y Jefes de Hogar Desocupados, which rises 40.72% in real terms, and the over 100% growth of “Familias” program. The other monetary transfer programs –basically social assistance to PNC beneficiaries and scholarships for school students– remain at the same nominal “Public Expenditure on Human Development in Argentina.” By Damián Bonari, Marcelo Becerra and Ariel 22 Fiszbein. World Bank Office for Argentina, Chile, Paraguay and Uruguay –Working Paper N.03/04 values, and therefore, decrease in real terms. Concerning non-monetary transfers, they increase 10.55% in real terms given the real increment of food programs (11.04% on average). Table 16 National Government Public Expenditure on Social Assistance, 2001-2003 In millions of pesos of 2001 Item Social Programs/ Personal Monetary Transfers Employment Programs Jefes/as de Hogar Trabajar Labor Training Actions Labor Emergency Plan (PEL) Financial Assistance for Social Expenditure Scholarships National Education Scholarships Non-Contributive Pensions Other Programs Human Development Income (IDH) Solidaridad Non-Monetary Social Programs Food Programs School Kitchens Unidos/Food Emergency Program (PEA) Community Kitchens (FOPAR) Prohuerta Others Central Administration Ministry of Social Development Presidency Ministry of Labor Total 2001 2002* 2003** Total Net Total Net Total Net Expend. Expend. Expend. Expend. Expend. Expend. 1,085.54 998.36 2,143.77 2,143.35 2,694.33 2,666.39 264.70 43.35 135.55 85.80 45.16 45.16 755.75 19.92 19.92 177.53 41.98 135.55 45.16 45.16 755.75 19.92 19.92 1,536.58 1,479.23 17.91 1.16 38.29 132.13 132.13 422.87 52.18 52.18 - 1,536.55 1,479.23 17.88 1.16 38.29 132.13 132.13 422.87 51.79 51.79 - 2,099.71 2,081.55 18.17 88.58 88.58 378.81 127.22 127.22 - 2,099.71 2,081.55 18.17 88.58 88.58 378.81 99.28 99.28 - 1,268.12 115.08 1,066.55 131.07 1,179.08 147.16 34.28 - 30.09 - 279.53 49.04 85.21 32.90 310.40 55.35 90.64 36.15 27.38 23.19 197.51 19.33 219.65 19.49 6.90 1,233.83 67.93 51.79 16.14 2,421.59 6.90 84.99 67.13 51.79 15.34 1,180.57 28.29 4.69 787.01 60.23 38.46 10.22 11.55 3,270.54 28.29 4.69 45.86 56.85 38.46 6.84 11.55 2,331.27 29.82 5.59 868.67 65.57 36.87 18.89 9.81 3,938.98 29.42 5.59 56.51 58.78 36.87 12.10 9.81 2,872.33 (*) Provisional accrual, (**) Initial credit Source: analysis based on data from the Directorate of Consolidated Social Expenditure “Public Expenditure on Human Development in Argentina.” By Damián Bonari, Marcelo Becerra and Ariel 23 Fiszbein. World Bank Office for Argentina, Chile, Paraguay and Uruguay –Working Paper N.03/04 Box 4 Social Assistance in Times of Crisis Throughout 2002 there were fundamental changes in social program design and execution. In particular, several programs were implemented to mitigate the impact of the crisis on vulnerable groups. In 2002, Jefas y Jefes de Hogar Desocupados program was created by Decree N° 565, to guarantee the Family Right to Social Inclusion. This plan is mainly aimed at unemployed heads of households with children up to 18 years of age. Beneficiaries receive a monthly allowance of $150 and in exchange, they have to prove that their children are attending school, and to comply with vaccination plans for children under 18 years of age. Formally, the plan foresees the participation of beneficiaries in productive projects, community services or training courses; however, this plan has not been extensively implemented. The budgetary execution of the program is the responsibility of the national government, but the provinces and municipalities are involved in its implementation. Besides, in each locality consulting councils formed by representatives from workers, business owners and social organizations are in charge of monitoring the program. The Food Emergency Program (PEA) was created by Decree N° 108 in 2002. It is aimed at purchasing food to cover the basic needs of the population with high vulnerability and subsistence risk. According to that decree, program resources are to be distributed among provinces in the following way: 40% according to the percentage of the population under the poverty line and the rest by the co-participation coefficients established by Law N° 23,548. The Human Development Income Program (IDH), also called “Familias”, which was created in 2002, is aimed at promoting child development, health and school attendance and to avoid social exclusion of vulnerable families. The program has two components: Income for Families and Joint Implementation (Gestión asociada). The former grants subsidies to poor families that are not receiving economic help from the State or family benefits, and have children under 19 years of age; in turn, families are expected to comply with health and schooling objectives. The latter is aimed at providing beneficiaries with access to basic health and education services so that they can comply with the required objectives. The Health Emergency Program was created in 2002 and is formed by the Drugs and Hospital Inputs Supply project and the Generic Drug for Primary Health Care project or Remediar. The former is aimed at collaborating with the provinces in purchasing inputs and drugs to keep primary and secondary health care services in operation. On the other hand, Remediar is aimed at preventing the deterioration of the health conditions of the poor. Its objective is to ensure timely and free access to appropriate treatments, which should include drug therapy for approximately 80% of the reasons for primary care consultations. Medicines are delivered by means of the Primary Health Care Centers (CAPS) public network, run by provinces and municipalities. The National Scholarship Program is aimed at students aged 13 to 19 who belong to low income families and are attending secondary school or EGBIII/Polimodal level. “Public Expenditure on Human Development in Argentina.” By Damián Bonari, Marcelo Becerra and Ariel 24 Fiszbein. World Bank Office for Argentina, Chile, Paraguay and Uruguay –Working Paper N.03/04 Social Insurance. In aggregate terms, expenditure on Social Insurance experienced a real fall of 33.25% in 2002, as the nominal values of the benefits and contributions of the main programs remained the same: retirement payments and pensions, which represent more than 60%, family benefits and social security health insurers. Conversely, the nominal value of unemployment insurance increased, and therefore it only dropped 12.14% in real terms. In 2003, budgeted expenditure on Social Insurance increased 11.47% with respect to the previous year. This represents a 5.26% decrease if figures are expressed in real terms. The nominal change corresponds basically to the restitution of the 13% cut on retirement payments that was enforced during 2001-2002xxii, the rise of minimum retirement from $150 to $200 and to higher expenditures on health insurers (including PAMI) on account of the growth of payments and contributions resulting from economic recovery. The only programs that grew in real terms are subsidies and PAMI, with 37.00% and 1.99% respectively. Table 17 National Government Public Expenditure on Social Insurance, 2001-2003 In millions of pesos of 2001 Item Administration of ANSES, SSS, etc. Retirement and Pensions National (including ex-provincial funds) Provincial Subsidies Family Benefits Unemployment Insurance PAM I Health Insurers Total 2001 2002* 2003** Total Net Total Net Total Net Expend. Expend. Expend. Expend. Expend. Expend. 249.11 249.11 203.27 203.27 179.56 179.56 15,832.46 15,690.20 10,585.35 10,430.29 9,909.08 9,657.22 15,832.46 15,690.20 10,585.35 10,430.29 9,909.08 9,657.22 609.00 609.00 358.61 358.61 491.28 491.28 1,807.95 1,807.95 1,085.32 1,085.32 989.76 989.76 353.70 353.70 310.77 310.77 280.76 280.76 2,389.23 2,389.23 1,726.47 1,726.47 1,760.75 1,760.75 3,973.84 3,973.84 2,562.02 2,562.02 2,334.62 2,334.62 25,215.30 25,073.04 16,831.80 16,676.74 15,945.81 15,693.95 (*) Provisional accrual, (**) Initial credit Source: analysis based on data from the Directorate of Consolidated Social Expenditure II.2. Changes at Provincial Level In order to analyse provincial government expenditure during 2002, we worked with a group of eight provinces according to data availability: Buenos Aires City, Buenos Aires Province, Córdoba, Chubut, Neuquén, Río Negro and San Juan. With this group it is possible to analyse the behaviour of provincial expenditure, as it concentrates over 60% of provincial GPDH. During 2002, GPDH fell 35.92% in real terms in these provinces, with a similar behaviour among sectors but for Social Assistance, which experienced a nominal increase of 11.07% that softened the effect of inflation, and fell 26.92% in real terms. The reduction in Education and Health is directly related to the nominal freeze on salaries, which in both cases represent around 90%. On the other hand, according to the composition by sectors for 2001, on average provinces allocate 45.01% to Education, 28.78% to Social Insurance, 17.33% to Health and 8.88% to Social Assistance. In 2002, the main change in this distribution is the rise in the share of expenditure on Social Assistance to 10.13%, mainly in detriment to Education, which falls to 42.68%. However, if we analyse provinces separately, these averages show a great dispersal, particularly in the Social Insurance share. This is due to the fact that some of the provinces analysed –Buenos Aires City, San Juan and Río Negro– transferred social security funds to the Retirement and Pensions Integrated System. The other provinces have kept their responsibility for provincial retirement and pension payments and therefore, have a relatively high share in expenditure on “Public Expenditure on Human Development in Argentina.” By Damián Bonari, Marcelo Becerra and Ariel 25 Fiszbein. World Bank Office for Argentina, Chile, Paraguay and Uruguay –Working Paper N.03/04 Social Insurance. This fact makes comparing provinces a difficult process; however, the following cases stand out. Although it has not transferred its social security fund, Buenos Aires Province shows one of the highest shares in expenditure on Education (44.87%). It is followed by San Juan and Río Negro, which have already transferred their social security funds. In Health, Buenos Aires City stands out with a 41.39% share, which largely surpasses the share of the other provinces. On the other hand, the provinces with the highest share in expenditure on Social Assistance are Neuquén and Río Negro, although the latter has transferred its social security fund. In per capita terms, a great disparity among provinces is also observed. Buenos Aires Province, with over 14.5 million inhabitants, has the lowest per capita GPDH ($523.53); at the other end is Neuquén, with a per inhabitant expenditure of $1,352.80, followed by Chubut with $925.14. The provinces of San Juan and Río Negro and Buenos Aires City are in a lower range that goes from $570 to $710 per inhabitant; this is partly explained by their low expenditure on Social Insurance. Table 18 Public Expenditure on Human Development of the Provinces Analysed, 2000-2002 In millions of pesos of 2001 Sector Education Health Social Assistance Social Security Health Insurers Retirement and Pensions Total 2000* 6,055.48 2,382.19 1,363.82 3,893.07 1,244.13 2,648.94 13,694.56 2001* 6,427.06 2,474.87 1,267.74 4,108.57 1,265.14 2,843.43 14,278.23 2002** 2002/2001 (%) 3,904.66 1,633.57 926.42 2,684.25 840.31 1,843.94 9,148.91 (39.25) (33.99) (26.92) (34.67) (33.58) (35.15) (35.92) (*) Provisional, (**) Estimación Source: analysis based on data from the Directorate of Consolidated Social Expenditure Among programs executed by the national government and the provinces, some have similar goals and share the target population. In particular, the persistence of high unemployment rates, which are higher than 13% since 1995, encouraged provinces to implement employment programs of different modalities, using both their own funds as well as national resources. Some programs have training components, others seek to reinsert unemployed workers in the labor market through agreements with the private sector or municipalities.xxiii At the beginning of 2002, in the face of higher unemployment and poverty generated by the inflationary effectxxiv, the national government implemented Jefas y Jefes de Hogar Desocupados, an income transfer program for unemployed individuals. Thus, initiatives to counteract the impact of recession and the increase in poverty levels have been generated from both government levels. This duplication of actions – in relation to goals pursued, not in terms of scope– generate distortions and inefficiencies in the implementation of social policies. Although some of these problems were created by the urgency with which certain programs were implemented during 2002, there is wide scope for improved coordination in the design and implementation of social programs in general, for a more effective use of the resources invested by the national government and the provinces. For 2002 it is relevant to analyse how provinces reacted to the expansion of national expenditure on Social Assistance, particularly on employment, food and scholarship programs. In this sense, the following analysis intends to capture the existence or not of a substitution effect of provincial expenditure for national expenditure. In the case of provincial employment programs, in 2002 there was a significant reduction of 47.97% in real terms with respect to the previous year. However, the nominal level of 2002 was very similar to the level of 2000. If we consider that during 2001 there “Public Expenditure on Human Development in Argentina.” By Damián Bonari, Marcelo Becerra and Ariel 26 Fiszbein. World Bank Office for Argentina, Chile, Paraguay and Uruguay –Working Paper N.03/04 was a special conditional transfer from the national government and that the value of the subsidies paid to beneficiaries remained constant, there seems to be evidence that provinces kept the historical coverage of these programs. Concerning scholarships, the reduction took place in 2001, when Buenos Aires Province, to which an important part of the expenditure was allocated, discontinued this program. In the case of food programs, in 2002 nominal provincial expenditure increased in a magnitude equivalent to the increment of national transfers to PEA. In other words, in nominal terms we do not observe a displacement effect of provincial food programs for national ones. The case of school kitchens is different, as the increase of national expenditure was not implemented through conditional transfers; therefore, there was not only a substitution effect but an increase in provincial nominal expenditure. Table 19 Public Expenditure on Social Assistance of the Provinces Analysed, 2000-2002 In millions of pesos of 2001 Item Social Programs / Personal Monetary Transfers Employment Programs Jefes/as de Hogar Trabajar Labor Emergency Plan (PEL) Provincial Programs Scholarships National Education Scholarships Provincial Education Scholarships Non-Contributive Pensions Other Programs Human Development Income (IDH) Solidaridad Other National Programs Other Provincial Programs Non-Monetary Social Programs Food Programs Schools Kitchens Food Emergency Program (PEA) Community Kitchens (FOPAR) Provincial Food Programs Prohuerta Other Programs Central Administration Ministry of Social Development Ministry of Labor Total 2000* 2001* 2002** 2002/2001 546.55 469.74 274.80 (41.50) 206.27 206.27 147.46 147.46 100.22 92.61 92.61 747.02 497.53 198.73 298.80 249.49 70.25 70.25 1,363.82 269.33 269.33 12.57 12.57 100.40 87.44 87.44 722.59 462.36 182.43 279.93 260.23 75.41 75.41 1,267.74 140.14 140.14 7.52 7.52 66.23 60.91 60.91 596.08 395.28 147.94 247.34 200.81 55.55 55.55 926.42 (47.97) (47.97) (40.23) (40.23) (34.04) (30.34) (30.34) (17.51) (14.51) (18.91) (11.64) (22.83) (26.34) (26.34) (26.92) (*) Provisional, (**) Estimation Source: analysis based on data from the Directorate of Consolidated Social Expenditure III. CONCLUSIONS The document has developed a detailed analysis in terms of composition, structure and financing of the expenditure in human development. In this framework, the main aspects to be highlighted are: (a) The post-convertibility period generated changes in the composition and level of GPDH. In one hand, the magnitude of the social crisis required emergency answers from the government, which led to increases in certain programs. In other hand, the increase in prices implied a decrease in real “Public Expenditure on Human Development in Argentina.” By Damián Bonari, Marcelo Becerra and Ariel 27 Fiszbein. World Bank Office for Argentina, Chile, Paraguay and Uruguay –Working Paper N.03/04 wages and pensions that, in great extend, remained constant in nominal terms. At national level, the period post-convertibility can be characterized by two main changes: (i) a significant increase of resources allocated to Social Assistance – 35.06% in real terms- , particularly the expenditure in Social Assistance executed by the national level – 97% in real terms - , and in some Health’s programs – all of them in the framework of the program of social emergency -; (ii) a freeze in nominal terms en all the rest of the GDPH expenditures, compose mainly by pensions and salaries. As a consequence, this situation led to an important change in the composition of GPDH in a context of a strong decrease, both in real terms and in terms of GDP. In particular, the expenditure of the national government decrease 29,16% in real terms and 7,58% in terms of the GDP –from 11,39% in 2001 to 10,53% in 2002-; (iii) as a consequence of (i), the participation of the national government in the total GPDH increased due to the raise in social programs, either those executed by the national government or the conditional transfers to provinces. The decomposition by sectors indicates that in 2002 the participation of the national government dedicate to Social Assistance increased from 7,91% to 15,08% of total GPDH. Similarly, the relative importance of Health went from 1,74% to 2,12. For the contrary, Social Insurance decreased from 82,36% to 77,61% and Education from 7,99% to 5,20%. In 2003, the total GPDH remained in 2002’s level in terms of GDP (10,5%). However, in terms of composition, the expenditures in Social Assistance continued increasing its relative participation reaching 18,04%, Health increased its participation until about 3% and Education 6%, whereas Social Insurance lost even more participation – decreased to 73,01%- compensating in this way the increase in all the other sectors. At provincial level, during 2002 the GPDH in the provinces decreased by 35,92% in real terms, with a similar pattern in all sectors, except Social Assistance, that increased 11,07% in nominal terms, compensating partially the increase in prices, but decreasing in real terms by 26,92%. The reduction in Education and Health is directly linked to the nominal freeze in salaries, which represents around 90% in both sectors. In other hand, in terms of composition by sectors in 2001, the provinces allocated 45,01% on average to Education, 28,78% to Social Insurance, 17,33% to Health and 8,88% to Social Insurance. In 2002, the man change is the increase in the participation of Social Assistance to 10,13%, basically crowding-out Education, that decreased to 42,68% (Table 18). (b) Either from the point of view of the source of financing or execution, Argentina continues having a complex setting of financial and administrative interactions between national and provincial governments, with important implications at institutional and distributive levels. Concerning the first aspect, it has been analyzed which sector pays or how the GPDH is financed (through taxes of personal contributions) and who receive it (beneficiaries of each GPDH’s sector o beneficiaries of insurances, since the distributive impact intra-sector has not been analyzed). The analysis by sectors reflects that Social Insurance is the only sector in which the personal contributions finance part of the expenditure – its participation reaches 65,21%- since Education, Health and Social Assistance are fully financed by national and provincial treasuries. The financinf of Social Insurance through personal contributions reaches 91,6% in the provinces and 58,31% at national level. This situation responds to several factors: in the provinces, the expenditure in Social Insurance is assigned only to pensions and to the health insurance, whereas at national level is also assigned to family allocations, unemployment insurance health insurance of pensioners (PAMI) and subsidies. The national health insurance (Obras Sociales nacionales) are regulated by the national government, but are fully financed by personal contributions; by contrast 58,94% of the resources to finance the pensions comes the national treasury. In summary, the Social Insurance’s structure of financing is complex: the importance of the national fiscal expenditure reaches to 32,98% of the total and finance 46,12% of the pensions, 75.12% of the administration, 100% of the subsidies, 7,62% of unemployment insurance and 17,30% of PAMI. “Public Expenditure on Human Development in Argentina.” By Damián Bonari, Marcelo Becerra and Ariel 28 Fiszbein. World Bank Office for Argentina, Chile, Paraguay and Uruguay –Working Paper N.03/04 In other hand, the analysis has also presented the intricate institutional setting in terms of revenue collection and execution’s agencies. These complexities, which deserve a more detailed analysis, show a context with high proclivity to create opportunities for inefficiencies in the administration of the execution of the expenditures. (c ) This report intends also to capture the existence, or not, of a “substitution effect” from provincial expenditure to national expenditure. In the case of the provincial programs of employment in 2002 a significant reduction of 47,97% has occurred in real terms with respect 2001. However, the GDPH’s nominal level of 2002 was very similar to 2000. Taking into account that during 2001 was a special national conditional transfer and that the paid subsidies remained constant, it seems that there is evidence that the provinces maintained the historical coverage of the programs. With respect to the scholarships, the reduction took place in 2001, when the Province of Buenos Aires discontinued the program. In the case of feeding programs, in 2002 the nominal provincial expenditure increased in a similar magnitude that the increase in the national conditional transfer corresponding to the national feeding program (PEA). In other words, a “crowing-out” effect from provincial nominal expenditure to national financed expenditure is not observed in nominal terms in the case of the feeding programs. The case of the school feeding program (Comedores Escolares) is different since the increase of national expenditure it was not instrumented through conditional transfer; therefore, not only a “crowding-out” did not occur, but the provinces increases this expenditures in nominal terms. ANNEX Table A.1 Consolidated Social Public Expenditure, 2000-2001 In millions of pesos and in percentage GPSC 2000 In millions of pesos Percentage structure As a % of GPT As a % of GDP 2001 In millions of pesos Percentage structure As a % of GPT As a % of GDP National Provincial Municipal Consolidated 30,982.55 51.34 62.25 10.90 25,278.54 41.89 65.93 8.89 4,082.90 6.77 51.39 1.44 60,343.99 100.00 62.82 21.23 29,677.79 50.14 60.42 11.05 25,488.80 43.06 65.23 9.49 4,027.23 6.80 51.17 1.50 59,193.83 100.00 61.62 22.03 Source: analysis based on data from the Directorate of Consolidated Social Expenditure “Public Expenditure on Human Development in Argentina.” By Damián Bonari, Marcelo Becerra and Ariel 29 Fiszbein. World Bank Office for Argentina, Chile, Paraguay and Uruguay –Working Paper N.03/04 Table A.2 Consolidated Social Public Expenditure by Function, 2000-2001 In millions of pesos and in percentage structure GPSC Education, Culture, Science & Tech. Health Fresh Water and Sewerage Housing and Urbanism Social Development and Assistance Social Security Labor Other Urban Services Total 2000 In millions of $ 14,236.98 13,928.33 277.27 1,094.51 3,412.00 22,473.12 2,701.38 2,220.40 60,343.99 % Structure 23.59 23.08 0.46 1.81 5.65 37.24 4.48 3.68 100.00 2001 In millions % of $ Structure 14,034.47 23.71 13,656.31 23.07 238.06 0.40 1,082.01 1.83 3,305.71 5.58 21,913.51 37.02 2,770.88 4.68 2,192.87 3.70 59,193.83 100.00 Source: analysis based on data from the Directorate of Consolidated Social Expenditure Table A.3 Public Expenditure on Human Development by Sector, 2000-2001 In millions of pesos and in percentage structure Sector Education Health Social Assistance Social Insurance Total 2000 In millions of $ 12,203.25 4.398,71 3,241.04 32,843.74 52,686.74 2001 % In millions % Structure of $ Structure 41.12 12,185.42 302.58 14.82 4,371.50 108.55 10.92 3,252.54 80.76 110.67 31,916.33 792.51 177.53 51,725.79 1,284.40 Source: analysis based on data from the Directorate of Consolidated Social Expenditure “Public Expenditure on Human Development in Argentina.” By Damián Bonari, Marcelo Becerra and Ariel 30 Fiszbein. World Bank Office for Argentina, Chile, Paraguay and Uruguay –Working Paper N.03/04 Table A.4.1 Public Expenditure on Education, 2000-2001 In millions of pesos Item Provision of Education Services Teachers’ Salaries Public Schools Transfers to Tertiary Institutes Transfers to Private Sector Goods and Services / Maintenance Infrastructure and Equipment Transfers to Universities Policy, Coordination and Regulation Central Administration Quality Information and Assessment Curriculum Management and Training Strengthening of Provincial Educational Admin. (PREGASE, PRISE y PRODYMES) Decentralized Entities (INAP, CONEAU, etc.) Other Programs Total 2000 National Provincial Total 1,663.96 9,736.58 11,400.54 14.67 9,385.19 9,399.86 8,024.67 8,024.67 14.67 14.67 1,360.51 1,360.51 149.43 149.43 55.88 201.96 257.85 1,593.41 1,593.41 51.84 647.16 699.00 31.06 569.86 600.91 10.23 3.39 6.84 15.29 15.29 2001 National Provincial Total 1,563.54 9,845.89 11,409.44 10.97 9,516.60 9,527.57 8,112.28 8,112.28 10.97 10.97 1,404.32 1,404.32 172.69 172.69 28.74 156.60 185.34 1,523.84 1,523.84 49.81 655.29 705.10 29.72 595.60 625.33 9.49 3.73 5.77 6.47 27.22 33.69 6.39 55.18 61.57 3.90 26.70 30.60 11.00 30.85 1,746.65 72.86 10,456.60 11.00 103.71 12,203.25 5.99 21.75 1,635.10 49.13 10,550.32 5.99 70.88 12,185.42 Source: analysis based on data from the Directorate of Consolidated Social Expenditure Table A.4.2 Public Expenditure on Education, 2000-2001 As a % of GDP Item Provision of Education Services Teachers’ Salaries Public Schools Transfers to Tertiary Institutes Transfers to Private Sector Goods and Services / Maintenance Infrastructure and Equipment Transfers to Universities Policy, Coordination and Regulation Central Administration Quality Information and Assessment Curriculum Management and Training Strengthening of Provincial Educational Admin. (PREGASE, PRISE y PRODYMES) Decentralized Entities (INAP, CONEAU, etc.) Other Programs Total 2000 National Provincial 0.59 3.43 0.01 3.30 2.82 0.01 0.48 0.05 0.02 0.07 0.56 0.02 0.23 0.01 0.20 0.00 0.00 0.01 Total 4.01 3.31 2.82 0.01 0.48 0.05 0.09 0.56 0.25 0.21 0.00 0.01 2001 National Provincial 0.58 3.66 0.00 3.54 3.02 0.00 0.52 0.06 0.01 0.06 0.57 0.02 0.24 0.01 0.22 0.00 0.00 0.00 0.01 Total 4.25 3.55 3.02 0.00 0.52 0.06 0.07 0.57 0.26 0.23 0.00 0.01 0.00 0.02 0.02 0.00 0.01 0.01 0.00 0.01 0.61 0.03 3.68 0.00 0.04 4.29 0.00 0.01 0.61 0.02 3.93 0.00 0.03 4.54 Source: analysis based on data from the Directorate of Consolidated Social Expenditure “Public Expenditure on Human Development in Argentina.” By Damián Bonari, Marcelo Becerra and Ariel 31 Fiszbein. World Bank Office for Argentina, Chile, Paraguay and Uruguay –Working Paper N.03/04 Table A.5.1 National Government Conditional Transfers to Education, 2000-2001 In millions of pesos Item Provision of Education Services Teachers’ Salaries Public Schools Transfers to Tertiary Institutes Transfers to Private Sector Goods and Services / Maintenance Infrastructure and Equipment Transfers to Universities Policy, Coordination and Regulation Central Administration Quality Information and Assessment Curriculum Management and Training Strengthening of Provincial Educational Admin. (PREGASE, PRISE y PRODYMES) Decentralized Entities (INAP, CONEAU, etc.) Other Programs Total 2000 836.41 817.07 660.00 157.07 19.34 24.61 6.09 - 2001 774.67 714.34 660.00 54.34 60.32 31.63 2.41 24.85 18.52 4.37 17.28 878.30 5.29 811.59 Source: analysis based on data from the Directorate of Consolidated Social Expenditure Table A.5.2 National Government Conditional Transfers to Education, 2000-2001 As a % of GDP Item Provision of Education Services Teachers’ Salaries Public Schools Transfers to Tertiary Institutes Transfers to Private Sector Goods and Services / Maintenance Infrastructure and Equipment Transfers to Universities Policy, Coordination and Regulation Central Administration Quality Information and Assessment Curriculum Management and Training Strengthening of Provincial Educational Admin. (PREGASE, PRISE y PRODYMES) Decentralized Entities (INAP, CONEAU, etc.) Other Programs Total 2000 0.29 0.29 0.23 0.06 0.01 0.01 0.00 - 2001 0.29 0.27 0.25 0.02 0.02 0.01 0.00 0.01 0.01 0.00 0.01 0.31 0.00 0.30 Source: analysis based on data from the Directorate of Consolidated Social Expenditure “Public Expenditure on Human Development in Argentina.” By Damián Bonari, Marcelo Becerra and Ariel 32 Fiszbein. World Bank Office for Argentina, Chile, Paraguay and Uruguay –Working Paper N.03/04 Table A.6.1 Public Expenditure on Health, 2000-2001 In millions of pesos Item Provision of Health Care Providers (hospitals and health care centers) Salaries, Inputs and Maintenance Assistance to PNC Beneficiaries Goods and Inputs Contributed by National Gov. Fight against AIDS and Sexually Transmitted Diseases Infrastructure and Equipment Policy, Coordination and Regulation Central Administration (mainly salaries) Training for Health and Assistance Human Resources Health Policy Planning, Control, Regulation And Enforcement/ fiscalización?? Support for Public Health Studies and Research Health Sector Reform Public Health Programs Fight against AIDS and Sexually Transmitted Diseases Prevention and Control of Specific Diseases And Risks (including Immunizations, VIGI-A, etc.) Maternal and Child Care Health Emergency Coverage Other Programs Total 2000 National Provincial 362.09 3,379.53 308.74 3,309.21 222.40 3,263.60 86.35 45.61 53.34 53.34 - Total 3,741.61 3,617.96 3,486.00 131.96 53.34 2001 National Provincial 304.49 3,453.76 254.75 3,387.70 198.24 3,342.66 56.51 45.04 49.74 0.09 Total 3,758.25 3,642.45 3,540.90 101.56 49.82 53.34 49.74 0.09 49.82 103.53 66.69 70.31 356.29 294.71 70.31 459.82 361.40 91.10 50.70 65.97 364.52 305.94 65.97 455.61 356.63 23.90 48.19 72.10 20.60 46.12 66.72 4.91 4.20 9.11 6.43 4.80 11.23 8.03 51.22 9.19 146.05 17.22 197.27 5.29 8.07 66.47 7.66 91.17 5.29 15.74 157.64 3.30 0.58 3.88 3.41 0.76 4.16 27.64 12.35 39.98 38.81 13.12 51.93 10.52 1.24 8.52 516.83 48.60 10.03 74.49 3,881.87 59.12 11.27 83.01 4,398.71 10.46 1.26 12.54 462.05 23.62 12.80 40.87 3,909.44 34.08 14.06 53.41 4,371.50 “Public Expenditure on Human Development in Argentina.” By Damián Bonari, Marcelo Becerra and Ariel 33 Fiszbein. World Bank Office for Argentina, Chile, Paraguay and Uruguay –Working Paper N.03/04 Table A.6.2 Public Expenditure on Health, 2000-2001 As a % of GDP Item Provision of Health Care Providers (hospitals and health care centers) Salaries, Inputs and Maintenance Assistance to PNC Beneficiaries Goods and Inputs Contributed by National Gov. Fight against AIDS and Sexually Transmitted Diseases Infrastructure and Equipment 2000 National Provincial 0.13 1.19 0.11 1.16 0.08 1.15 0.03 0.02 0.02 - Total 1.32 1.27 1.23 0.05 0.02 2001 National Provincial 0.11 1.29 0.09 1.26 0.07 1.24 0.02 0.02 0.02 0.00 Total 1.40 1.36 1.32 0.04 0.02 0.02 - 0.02 0.02 0.00 0.02 - 0.02 0.02 - 0.02 0.02 Policy, Coordination and Regulation 0.04 0.13 0.16 0.03 0.14 0.17 Central Administration (mainly salaries) Training for Health and Assistance Human Resources Health Policy Planning, Control, Regulation And Enforcement/ fiscalización?? Support for Public Health Studies and Research Health Sector Reform Public Health Programs Fight against AIDS and Sexually Transmitted Diseases Prevention and Control of Specific Diseases And Risks (including Immunizations, VIGI-A, etc.) Maternal and Child Care Health Emergency Coverage Other Programs Total 0.02 0.10 0.13 0.02 0.11 0.13 0.01 0.02 0.03 0.01 0.02 0.02 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.02 0.00 0.05 0.01 0.07 0.00 0.00 0.02 0.00 0.03 0.00 0.01 0.06 0.00 0.00 0.00 0.00 0.00 0.00 0.01 0.00 0.01 0.01 0.00 0.02 0.00 0.00 0.00 0.18 0.02 0.00 0.03 1.37 0.02 0.00 0.03 1.55 0.00 0.00 0.00 0.17 0.01 0.00 0.02 1.45 0.01 0.01 0.02 1.63 Source: analysis based on data from the Directorate of Consolidated Social Expenditure “Public Expenditure on Human Development in Argentina.” By Damián Bonari, Marcelo Becerra and Ariel 34 Fiszbein. World Bank Office for Argentina, Chile, Paraguay and Uruguay –Working Paper N.03/04 Table A.7.1 National Government Conditional Transfers to Health, 2000-2001 In millions of pesos Item Provision of Health Care Providers (hospitals and health care centers) Salaries, Inputs and Maintenance Assistance to PNC Beneficiaries Goods and Inputs Contributed by National Gov. Fight against AIDS and Sexually Transmitted Diseases Infrastructure and Equipment Policy, Coordination and Regulation Central Administration (mainly salaries) Training for Health and Assistance Human Resources Health Policy Planning, Control, Regulation And Enforcement/ fiscalización?? Support for Public Health Studies and Research Health Sector Reform Public Health Programs Fight against AIDS and Sexually Transmitted Diseases Prevention and Control of Specific Diseases And Risks (including Immunizations, VIGI-A, etc.) Maternal and Child Care Health Emergency Coverage Other Programs Total 2000 45.61 45.61 45.61 - 2001 45.13 45.04 45.04 0.08 - 0.08 - 1.31 1.31 - - - - 50.74 22.73 - - 6.19 3.65 44.55 96.35 19.00 0.08 69.17 Source: analysis based on data from the Directorate of Consolidated Social Expenditure “Public Expenditure on Human Development in Argentina.” By Damián Bonari, Marcelo Becerra and Ariel 35 Fiszbein. World Bank Office for Argentina, Chile, Paraguay and Uruguay –Working Paper N.03/04 Table A.7.2 National Government Conditional Transfers to Health, 2000-2001 As a % of GDP Item Provision of Health Care Providers (hospitals and health care centers) Salaries, Inputs and Maintenance Assistance to PNC Beneficiaries Goods and Inputs Contributed by National Gov. Fight against AIDS and Sexually Transmitted Diseases Infrastructure and Equipment 2000 0.02 0.02 0.02 - 2001 0.02 0.02 0.02 0.00 0.00 - - Policy, Coordination and Regulation - 0.00 Central Administration (mainly salaries) Training for Health and Assistance/Social Work?? Human Resources Health Policy Planning, Control, Regulation And Enforcement/ fiscalización?? Support for Public Health Studies and Research Health Sector Reform Public Health Programs Fight against AIDS and Sexually Transmitted Diseases Prevention and Control of Specific Diseases And Risks (including Immunizations, VIGI-A, etc.) Maternal and Child Care Health Emergency Coverage Other Programs Total - 0.00 - - - - 0.02 0.01 - - 0.00 0.00 0.02 0.03 0.01 0.00 0.03 Source: analysis based on data from the Directorate of Consolidated Social Expenditure “Public Expenditure on Human Development in Argentina.” By Damián Bonari, Marcelo Becerra and Ariel 36 Fiszbein. World Bank Office for Argentina, Chile, Paraguay and Uruguay –Working Paper N.03/04 Table A.8.1 Public Expenditure on Social Assistance, 2000-2001 In millions of pesos Item 2000 National Provincial Targeted Social Programs/ 920.89 Monetary Personal Transfers Employment Programs 190.84 Jefes/as de Hogar Trabajar 89.70 Labor Emergency Plan (PEL) 101.13 Financial Assistance for Social Expenditure Provincial Programs Scholarships 56.82 National Education Scholarships 56.82 Polimodal Scholarships, Buenos Aires Province Non-Contributive Pensions 672.95 Other Programs 0.28 Human Development Income (IDH) Solidaridad 0.28 Provincial Programs Non-Monetary Targeted Social Programs 129.84 Food Programs 45.73 School Kitchens Food Emergency Program (PEA) 45.73 Community Kitchens (FOPAR) Provincial Food Programs Prohuerta Others 84.11 Central Administration 77.23 Ministry of Social Development 61.71 Ministry of Labor 15.53 Total 1,127.96 Total 2001 National Provincial Total 813.11 1,734.00 998.36 771.00 1,769.36 230.49 230.49 165.11 165.11 139.67 277.85 277.85 1,140.05 701.15 285.11 416.04 438.90 159.91 103.23 56.68 2,113.08 421.33 89.70 101.13 230.49 221.92 56.82 165.11 812.62 278.13 0.28 277.85 1,269.89 746.87 285.11 45.73 416.04 523.02 237.15 164.94 72.21 3,241.04 177.53 41.98 135.55 45.16 45.16 755.75 19.92 19.92 115.08 30.09 23.19 6.90 84.99 67.13 51.79 15.34 1,180.57 335.45 335.45 27.93 27.93 140.64 266.98 266.98 1,135.38 671.50 266.49 405.01 463.88 165.59 108.11 57.48 2,071.97 512.98 41.98 135.55 335.45 73.09 45.16 27.93 896.39 286.91 19.92 266.98 1,250.45 701.59 266.49 23.19 405.01 6.90 548.87 232.72 159.90 72.82 3,252.54 Source: analysis based on data from the Directorate of Consolidated Social Expenditure “Public Expenditure on Human Development in Argentina.” By Damián Bonari, Marcelo Becerra and Ariel 37 Fiszbein. World Bank Office for Argentina, Chile, Paraguay and Uruguay –Working Paper N.03/04 Table A.8.2 Public Expenditure on Social Assistance, 2000-2001 As a % of GDP Item Targeted Social Programs/ Monetary Personal Transfers Employment Programs Jefes/as de Hogar Trabajar Labor Emergency Plan (PEL) Financial Assistance For Provincial Social Expenditure Provincial Programs Scholarships National Education Scholarships Polimodal Scholarships, Buenos Aires Province Non-Contributive Pensions Other Programs Human Development Income (IDH) Solidaridad Other National Programs Provincial Programs 2000 National Provincial Total 2001 National Provincial Total 0.32 0.29 0.61 0.35 0.27 0.62 0.07 0.03 0.04 0.08 - 0.15 0.03 0.04 0.06 0.01 0.05 0.12 - 0.18 0.01 0.05 - - - - - - 0.02 0.02 0.24 0.00 0.00 - 0.08 0.06 0.06 0.05 0.10 0.10 0.08 0.08 0.02 0.06 0.29 0.10 0.00 0.10 0.02 0.02 0.27 0.01 0.01 - 0.12 0.01 0.01 0.05 0.09 0.09 0.12 0.03 0.02 0.01 0.32 0.10 0.01 0.09 Non-Monetary Targeted Social Programs 0.05 0.40 0.45 0.04 0.40 0.44 Food Programs School Kitchens Food Emergency Program (PEA) Community Kitchens (FOPAR) Provincial Food Programs Prohuerta Others Central Administration Ministry of Social Development Ministry of Labor Total 0.02 0.02 0.03 0.03 0.02 0.01 0.40 0.25 0.10 0.15 0.15 0.06 0.04 0.02 0.74 0.26 0.10 0.02 0.15 0.18 0.08 0.06 0.03 0.01 0.01 0.00 0.03 0.02 0.02 0.01 0.24 0.09 0.14 0.16 0.06 0.04 0.02 0.25 0.09 0.01 0.14 0.00 0.19 0.08 0.06 0.03 1.14 0.42 0.73 1.14 Source: analysis based on data from the Directorate of Consolidated Social Expenditure “Public Expenditure on Human Development in Argentina.” By Damián Bonari, Marcelo Becerra and Ariel 38 Fiszbein. World Bank Office for Argentina, Chile, Paraguay and Uruguay –Working Paper N.03/04 Table A.9.1 National Government Conditional Transfers to Social Assistance, 2000-2001 In millions of pesos Item Targeted Social Programs/ Monetary Personal Transfers Employment Programs Jefes/as de Hogar Trabajar Labor Emergency Plan (PEL) Financial Assistance for Social Expenditure Provincial Programs Scholarships National Education Scholarships Polimodal Scholarships, Buenos Aires Province Non-Contributive Pensions Other Programs Human Development Income (IDH) Solidaridad Provincial Programs Non-Monetary Targeted Social Programs Food Programs School Kitchens Unidos/ Food Emergency Program (PEA) Community Kitchens (FOPAR) Provincial Food Programs Prohuerta Others Central Administration Ministry of Social Development Ministry of Labor Total 2000 2001 0.72 87.17 0.72 0.72 106.94 1.58 - 87.17 1.37 85.80 58.50 4.19 - 1.58 4.19 105.37 107.67 54.31 0.80 0.80 146.48 Source: analysis based on data from the Directorate of Consolidated Social Expenditure “Public Expenditure on Human Development in Argentina.” By Damián Bonari, Marcelo Becerra and Ariel 39 Fiszbein. World Bank Office for Argentina, Chile, Paraguay and Uruguay –Working Paper N.03/04 Table A.9.2 National Government Conditional Transfers to Social Assistance, 2000-2001 As a % of GDP Item Targeted Social Programs/ Monetary Personal Transfers Employment Programs Jefes/as de Hogar Trabajar Labor Emergency Plan (PEL) Financial Assistance For Provincial Social Expenditure Provincial Programs Scholarships National Education Scholarships Polimodal Scholarships, Buenos Aires Province Non-Contributive Pensions Other Programs Human Development Income (IDH) Solidaridad Other National Programs Provincial Programs 2000 2001 0.00 0.03 0.00 0.00 - 0.03 0.00 - - 0.03 - - Non-Monetary Targeted Social Programs 0.04 0.02 Food Programs School Kitchens Food Emergency Program (PEA) Community Kitchens (FOPAR) Provincial Food Programs Prohuerta Others Central Administration Ministry of Social Development Ministry of Labor Total 0.00 0.00 0.04 0.04 0.00 0.00 0.02 0.00 0.00 0.05 Source: analysis based on data from the Directorate of Consolidated Social Expenditure “Public Expenditure on Human Development in Argentina.” By Damián Bonari, Marcelo Becerra and Ariel 40 Fiszbein. World Bank Office for Argentina, Chile, Paraguay and Uruguay –Working Paper N.03/04 Table A.10.1 Public Expenditure on Social Insurance, 2000-2001 In millions of pesos Item Administration of ANSeS, SSS, etc. Retirement and Pensions National (including ex-provincial funds) Provincial Subsidies Family Benefits Unemployment Insurance PAM I Health Insurers National Provincial Total 2000 National Provincial Total 292.99 88.49 381.48 16,379.92 4,331.56 20,711.47 16,379.92 16,379.92 4,331.56 4,331.56 633.71 633.71 1.865,02 1.865,02 302.17 302.17 2,563.79 2,563.79 4,151.23 2,234.86 6,386.09 4,151.23 4,151.23 2,234.86 2,234.86 26,188.84 6,654.91 32,843.74 2001 National Provincial Total 249.11 89.09 338.20 15,690.20 4,520.36 20,210.56 15,690.20 15,690.20 4,520.36 4,520.36 609.00 609.00 1.807,95 1.807,95 353.70 353.70 2,389.23 2,389.23 3,973.84 2,233.85 6,207.69 3,973.84 3,973.84 2,233.85 2,233.85 25,073.04 6,843.30 31,916.33 Source: analysis based on data from the Directorate of Consolidated Social Expenditure Table A.10.2 Public Expenditure on Social Insurance, 2000-2001 As a % of GDP Item Administration of ANSeS, SSS, etc. Retirement and Pensions National (including ex-provincial funds) Provincial Subsidies Family Benefits Unemployment Insurance PAM I Health Insurers National Provincial Total 2000 National Provincial 0.10 0.03 5.76 1.52 5.76 1.52 0.22 0.66 0.11 0.90 1.46 0.79 1.46 0.79 9.21 2.34 Total 0.13 7.29 5.76 1.52 0.22 0.66 0.11 0.90 2.25 1.46 0.79 11.56 2001 National Provincial 0.09 0.03 5.84 1.68 5.84 1.68 0.23 0.67 0.13 0.89 1.48 0.83 1.48 0.83 9.33 2.55 Total 0.13 7.52 5.84 1.68 0.23 0.67 0.13 0.89 2.31 1.48 0.83 11.88 Source: analysis based on data from the Directorate of Consolidated Social Expenditure “Public Expenditure on Human Development in Argentina.” By Damián Bonari, Marcelo Becerra and Ariel 41 Fiszbein. World Bank Office for Argentina, Chile, Paraguay and Uruguay –Working Paper N.03/04 Table A.11.1 National Government Conditional Transfers to Social Insurance, 2000-2001 In millions of pesos Item Administration of ANSeS, SSS, etc. Retirement and Pensions National (including ex-provincial funds) Provincial Subsidies Family Benefits Unemployment Insurance PAM IHealth Insurers National Provincial Total 2000 168.05 168.05 5.10 5.10 173.16 2001 142.27 142.27 4.09 4.09 146.35 Source: analysis based on data from the Directorate of Consolidated Social Expenditure Table A.11.2 National Government Conditional Transfers to Social Insurance, 2000-2001 As a % of GDP Item Administration of ANSeS, SSS, etc. Retirement and Pensions National (including ex-provincial funds) Provincial Subsidies Family Benefits Unemployment Insurance PAM I Health Insurers National Provincial Total 2000 0.06 0.06 0.00 0.00 0.06 2001 0.05 0.05 0.00 0.00 0.05 Source: analysis based on data from the Directorate of Consolidated Social Expenditure “Public Expenditure on Human Development in Argentina.” By Damián Bonari, Marcelo Becerra and Ariel 42 Fiszbein. World Bank Office for Argentina, Chile, Paraguay and Uruguay –Working Paper N.03/04 Table A.12.1 Composition of Public Expenditure on Human Development Financing, 2000-2001 In millions of pesos Sector 2000 Education Health Social Assistance Social Insurance Administration Retirement/ Pensions Subsidies Family Unemployment Ins. PAM Insurers I Health Total 2001 Education Health Social Assistance Social Insurance Administration Retirement/ Pensions Subsidies Family Benefits Unemployment Ins. PAM I Health Insurers Total Fiscal Expend. National Payments Total And Contrib. 1,746.65 516.83 1,127.96 10,447.06 292.99 9,082.74 633.71 437.62 13,838.50 15,741.78 1,635.10 462.05 1,180.57 10,902.04 249.11 9,575.38 609.00 49.60 418.94 14,179.77 14,171.00 7,297.18 1,865.02 302.17 2,126.17 4,151.23 15,741.78 6,114.82 1,807.95 304.10 1,970.29 3,973.84 14,171.00 Fiscal Expend. Provincial Payments Total And Contrib. 1,746.65 516.83 1,127.96 26,188.84 292.99 16,379.92 633.71 1,865.02 302.17 2,563.79 4,151.23 29,580.28 10,456.60 3,881.87 2,113.08 567.83 88.49 474.24 5.10 17,019.38 6,087.08 1,635.10 462.05 1,180.57 25,073.04 249.11 15,690.20 609.00 1,807.95 353.70 2,389.23 3,973.84 28,350.77 10,550.32 3,909.44 2,071.97 599.26 89.09 506.08 4.09 17,130.99 6,244.04 3,857.32 2,229.76 6,087.08 4,014.28 2,229.76 6,244.04 Fiscal Expend. Total Payments Total And Contrib. 10,456.60 3,881.87 2,113.08 6,654.91 88.49 4,331.56 2,234.86 23,106.46 12,203.25 4,398.71 3,241.04 11,014.89 381.48 9,556.97 633.71 437.62 5.10 30,857.88 21,828.86 11,154.50 1,865.02 302.17 2,126.17 6,380.99 21,828.86 12,203.25 4,398.71 3,241.04 32,843.74 381.48 20,711.47 633.71 1,865.02 302.17 2,563.79 6,386.09 52,686.74 10,550.32 3,909.44 2,071.97 6,843.30 89.09 4,520.36 2,233.85 23,375.03 12,185.42 4,371.50 3,252.54 11,501.29 338.20 10,081.46 609.00 49.60 418.94 4.09 31,310.75 20,415.04 10,129.10 1,807.95 304.10 1,970.29 6,203.60 20,415.04 12,185.42 4,371.50 3,252.54 31,916.33 338.20 20,210.56 609.00 1,807.95 353.70 2,389.23 6,207.69 51,725.79 Source: analysis based on data from the Directorate of Consolidated Social Expenditure “Public Expenditure on Human Development in Argentina.” By Damián Bonari, Marcelo Becerra and Ariel 43 Fiszbein. World Bank Office for Argentina, Chile, Paraguay and Uruguay –Working Paper N.03/04 Table A.12.2 Composition of Public Expenditure on Human Development Financing, 2000-2001 As a % of GDP National Fiscal Payments Total Expend. And Contrib. Sector Provincial Fiscal Payments Total Expend. And Contrib. Total Fiscal Payments Total Expend. And Contrib. 2000 Education Health Social Assistance Social Insurance Administration Retirement and Pensions Subsidies Family Unemployment Insurance PAM I Health Insurance Total 0.61 0.18 0.40 3.68 0.10 3.20 0.22 0.15 4.87 5.54 2.57 0.66 0.11 0.75 1.46 5.54 0.61 0.18 0.40 9.21 0.10 5.76 0.22 0.66 0.11 0.90 1.46 10.41 3.68 1.37 0.74 0.20 0.03 0.17 0.00 5.99 2.14 1.36 0.78 2.14 3.68 1.37 0.74 2.34 0.03 1.52 0.79 8.13 4.29 1.55 1.14 3.88 0.13 3.36 0.22 0.15 0.00 10.86 7.68 3.92 0.66 0.11 0.75 2.25 7.68 4.29 1.55 1.14 11.56 0.13 7.29 0.22 0.66 0.11 0.90 2.25 18.54 2001 Education Health Social Assistance Social Insurance Administration Retirement and Pensions Subsidies Family Unemployment Insurance PAM I Health Insurers Total 0.61 0.17 0.44 4.06 0.09 3.56 0.23 0.02 0.16 5.28 5.27 2.28 0.67 0.11 0.73 1.48 5.27 0.61 0.17 0.44 9.33 0.09 5.84 0.23 0.67 0.13 0.89 1.48 10.55 3.93 1.45 0.77 0.22 0.03 0.19 0.00 6.38 2.32 1.49 0.83 2.32 3.93 1.45 0.77 2.55 0.03 1.68 0.83 8.70 4.54 1.63 1.21 4.28 0.13 3.75 0.23 0.02 0.16 0.00 11.65 7.60 3.77 0.67 0.11 0.73 2.31 7.60 4.54 1.63 1.21 11.88 0.13 7.52 0.23 0.67 0.13 0.89 2.31 19.25 Source: analysis based on data from the Directorate of Consolidated Social Expenditure Table A.13.1 National Government Public Expenditure on Education, 2001-2003 In millions of pesos Item Provision of Education Services Teachers’ Salaries Public Schools Transfers to Tertiary Institutes Transfers to Private Sector Goods and Services / Maintenance Infrastructure and Equipment Transfers to Universities Higher Education Development Policy, Coordination and Regulation Central Administration Quality Information and Assessment Curriculum Management and Training Strengthening of Provincial Educational Administration (PREGASE, PRISE Y PRODYMES) Decentralized Entities (INAP, CONEAU, etc.) Other Programs Total 2001 Total Net Expend. Expend. 2,338.21 1,563.54 725.31 10.97 660.00 65.31 10.97 89.06 28.74 1,523.84 1,523.84 1,523.84 1,523.84 81.44 49.81 29.72 29.72 6.13 3.73 31.32 6.47 2002* Total Net Expend. Expend. 1,612.01 1,547.49 23.05 9.33 23.05 9.33 78.00 27.19 1,510.97 1,510.97 1,510.97 1,510.97 83.55 67.73 23.84 23.84 4.03 2.91 13.76 3.94 2003** Total Net Expend. Expend. 2,259.65 1,860.44 374.09 16.68 330.00 44.09 16.68 54.48 12.68 1,831.08 1,831.08 1,831.08 1,831.08 85.31 59.36 30.39 30.39 5.99 4.39 - 8.27 3.90 34.15 29.28 39.80 15.46 5.99 27.04 2,446.69 5.99 21.75 1,635.10 7.76 17.79 1,713.35 7.76 12.53 1,627.75 9.13 25.82 2,370.78 9.13 24.02 1,943.83 “Public Expenditure on Human Development in Argentina.” By Damián Bonari, Marcelo Becerra and Ariel 44 Fiszbein. World Bank Office for Argentina, Chile, Paraguay and Uruguay –Working Paper N.03/04 Table A.13.2 National Government Public Expenditure on Education, 2001-2003 As a % of GDP Item 2001 2002* 2003** Total Net Total Net Total Net Expend. Expend. Expend. Expend. Expend. Expend. 0.87 0.58 0.51 0.49 0.62 0.51 0.27 0.00 0.01 0.00 0.10 0.00 0.25 0.09 0.02 0.00 0.01 0.00 0.01 0.00 0.03 0.01 0.02 0.01 0.01 0.00 0.57 0.57 0.48 0.48 0.50 0.50 0.57 0.57 0.48 0.48 0.50 0.50 0.03 0.02 0.03 0.02 0.02 0.02 0.01 0.01 0.01 0.01 0.01 0.01 0.00 0.00 0.00 0.00 0.00 0.00 0.01 0.00 0.00 0.00 - Provision of Education Services Teachers’ Salaries Public Schools Transfers to Tertiary Institutes Transfers to Private Sector Goods and Services / Maintenance Infrastructure and Equipment Transfers to Universities Higher Education Development Policy, Coordination and Regulation Central Administration Quality Information and Assessment Curriculum Management and Training Strengthening of Provincial Educational Administration (PREGASE, PRISE Y PRODYMES) Decentralized Entities (INAP, CONEAU, etc.) Other Programs Total 0.00 0.00 0.01 0.01 0.01 0.00 0.00 0.01 0.91 0.00 0.01 0.61 0.00 0.01 0.55 0.00 0.00 0.52 0.00 0.01 0.65 0.00 0.01 0.53 (*) Provisional accrual, (**) Initial credit Source: analysis based on data from the Directorate of Consolidated Social Expenditure “Public Expenditure on Human Development in Argentina.” By Damián Bonari, Marcelo Becerra and Ariel 45 Fiszbein. World Bank Office for Argentina, Chile, Paraguay and Uruguay –Working Paper N.03/04 Table A.14.1 National Government Public Expenditure on Health, 2001-2003 In millions of pesos Item Provision of Health Care Providers (hospitals and health care centers) Salaries, Inputs and Maintenance Assistance to PNC Beneficiaries Goods and Inputs contributed by National Gov. Fight against AIDS and Sexually Transmitted Diseases Health Emergency (Insumos Proaps/Remediar) Infrastructure and Equipment Policy, Coordination and Regulation Central Administration (mainly salaries) Training for Health and Assistance Human Resources Health Policy Planning, Control, Regulation And Enforcement/ Fiscalización?? Support for Public Health Studies and Research Health Sector Reform Public Health Programs Fight against AIDS and Sexually Transmitted Diseases Prevention and Control of Specific Diseases And Risks (including Immunizations, VIGI-A, etc.) Maternal and Child Care Health Emergency Coverage Other Programs Total 2001 Total Net Expend. Expend. 349.62 304.49 299.80 254.75 198.24 198.24 101.56 56.51 49.82 49.74 2002* Total Net Expend. Expend. 388.84 332.67 296.15 250.94 219.96 219.96 76.19 30.98 92.69 81.73 2003** Total Net Expend. Expend. 771.38 699.75 373.58 302.94 260.42 260.42 113.17 42.53 397.80 396.81 49.82 49.74 75.37 74.42 185.74 184.75 - - 17.32 7.32 212.06 212.06 92.41 52.01 91.10 50.70 79.58 50.01 75.38 45.90 95.82 56.61 94.53 55.35 20.60 20.60 19.84 19.75 22.82 22.79 6.43 6.43 6.58 6.58 7.85 7.85 5.29 8.07 89.19 5.29 8.07 66.47 2.56 0.60 229.26 2.56 0.60 207.41 3.51 5.03 258.95 3.51 5.03 217.03 3.41 3.41 1.56 1.56 0.52 0.52 42.46 38.81 152.77 152.11 139.89 136.36 29.46 1.26 12.61 531.22 10.46 1.26 12.61 462.05 61.29 1.01 12.63 697.68 40.11 1.01 12.62 615.47 88.86 1.87 27.81 1,126.15 50.75 1.87 27.53 1,011.31 (*) Provisional accrual, (**) Initial credit Source: analysis based on data from the Directorate of Consolidated Social Expenditure Table A.14.2 “Public Expenditure on Human Development in Argentina.” By Damián Bonari, Marcelo Becerra and Ariel 46 Fiszbein. World Bank Office for Argentina, Chile, Paraguay and Uruguay –Working Paper N.03/04 National Government Public Expenditure on Health, 2001-2003 As a % of GDP Item Provision of Health Care Providers (hospitals and health care centers) Salaries, Inputs and Maintenance Assistance to PNC Beneficiaries Goods and Inputs contributed by National Gov. Fight against AIDS and Sexually Transmitted Diseases Health Emergency (Insumos Proaps/Remediar) Policy, Coordination and Regulation Central Administration (mainly salaries) Training for Health and Assistance Human Resources Health Policy Planning, Control, Regulation And Enforcement/ Fiscalización ?? Support for Public Health Studies and Research Health Sector Reform Public Health Programs Fight against AIDS and Sexually Transmitted Diseases Prevention and Control of Specific Diseases And Risks (including Immunizations, VIGI-A, etc.) Maternal and Child Care Health Emergency Coverage Other Programs Total Total Expend. 0.13 0.11 0.07 0.04 0.02 2001 Net Expend. 0.11 0.09 0.07 0.02 0.02 0.02 0.02 - - 2002* Total Net Expend. Expend. 0.12 0.11 0.09 0.08 0.07 0.07 0.02 0.01 0.03 0.03 2003** Total Net Expend. Expend. 0.21 0.19 0.10 0.08 0.07 0.07 0.03 0.01 0.11 0.11 0.02 0.02 0.05 0.05 0.01 0.00 0.06 0.06 0.03 0.02 0.03 0.02 0.03 0.02 0.02 0.01 0.03 0.02 0.03 0.02 0.01 0.01 0.01 0.01 0.01 0.01 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.03 0.00 0.00 0.02 0.00 0.00 0.07 0.00 0.00 0.07 0.00 0.00 0.07 0.00 0.00 0.06 0.00 0.00 0.00 0.00 0.00 0.00 0.02 0.01 0.05 0.05 0.04 0.04 0.01 0.00 0.00 0.20 0.00 0.00 0.00 0.17 0.02 0.00 0.00 0.22 0.01 0.00 0.00 0.20 0.02 0.00 0.01 0.31 0.01 0.00 0.01 0.28 (*) Provisional accrual, (**) Initial credit Source: analysis based on data from the Directorate of Consolidated Social Expenditure “Public Expenditure on Human Development in Argentina.” By Damián Bonari, Marcelo Becerra and Ariel 47 Fiszbein. World Bank Office for Argentina, Chile, Paraguay and Uruguay –Working Paper N.03/04 Table A.15.1 National Government Public Expenditure on Social Assistance, 2001-2003 In millions of pesos Item Targeted Social Programs / Monetary Personal Transfers Employment Programs Jefes/as de Hogar Trabajar Labor Training Actions Labor Emergency Plan (PEL) Financial Assistance for Provincial Social Expenditure Scholarships National Education Scholarships Non-Contributive Pensions Other Programs Human Development Income (IDH) Solidaridad Non-Monetary Targeted Social Programs Food Programs School Kitchens Food Emergency Program (PEA) Community Kitchens (FOPAR) Prohuerta Other Central Administration Ministry of Social Development Presidency Ministry of Labor Total 2001 Total Net Expend. Expend. 2002* Total Net Expend. Expend. 2003** Total Net Expend. Expend. 1,085.54 998.36 3,258.21 3,257.57 4,818.30 4,768.32 264.70 43.35 177.53 41.98 135.55 135.55 2,335.37 2,248.20 27.22 1.76 58.19 2,335.33 2,248.20 27.18 1.76 58.19 3,754.94 3,722.45 32.49 - 3,754.94 3,722.45 32.49 - 85.80 45.16 45.16 755.75 19.92 19.92 1,268.12 34.28 27.38 6.90 1,233.83 67.93 51.79 16.14 2,421.59 45.16 45.16 755.75 19.92 19.92 115.08 30.09 23.19 6.90 84.99 67.13 51.79 15.34 1,180.57 200.82 200.82 642.70 79.31 79.31 1,621.00 424.85 74.54 300.19 42.99 7.13 1,196.15 91.54 58.45 15.53 17.56 4,970.74 200.82 200.82 642.70 78.71 78.71 199.20 129.51 50.00 29.38 42.99 7.13 69.70 86.41 58.45 10.40 17.56 3,543.18 158.41 158.41 677.43 227.52 227.52 2,108.55 555.09 98.98 392.80 53.32 9.99 1,553.46 117.26 65.93 33.78 17.55 7,044.11 158.41 158.41 677.43 177.54 177.54 263.16 162.10 64.64 34.85 52.61 9.99 101.07 105.12 65.93 21.65 17.55 5,136.61 (*) Provisional accrual, (**) Initial credit Source: analysis based on data from the Directorate of Consolidated Social Expenditure “Public Expenditure on Human Development in Argentina.” By Damián Bonari, Marcelo Becerra and Ariel 48 Fiszbein. World Bank Office for Argentina, Chile, Paraguay and Uruguay –Working Paper N.03/04 Table A.15.2 National Government Public Expenditure on Social Assistance, 2001-2003 As a % of GDP Item Targeted Social Programs / Personal Monetary Transfers Employment Programs Jefes/as de Hogar Trabajar Labor Training Actions Labor Emergency Plan (PEL) Financial Assistance for Social Expenditure Provincial Programs Scholarships National Education Scholarships Non-Contributive Pensions Other Programs Human Development Income (IDH) Solidaridad Non-Monetary Targeted Social Programs Food Programs School Kitchens Food Emergency Program (PEA) Community Kitchens (FOPAR) Prohuerta Others Central Administration Ministry of Social Development Presidency Ministry of Labor Total 2001 2002* 2003** Total Net Total Net Total Net Expend. Expend. Expend. Expend. Expend. Expend. 0.40 0.37 1.04 1.04 1.31 1.30 0.10 0.02 0.05 0.07 0.02 0.05 0.75 0.72 0.01 0.00 0.02 0.75 0.72 0.01 0.00 0.02 1.02 1.01 0.01 - 1.02 1.01 0.01 - 0.03 - - - - - 0.02 0.02 0.28 0.01 0.01 0.47 0.01 0.01 0.00 0.00 0.03 0.02 0.01 0.90 0.02 0.02 0.28 0.01 0.01 0.04 0.01 0.01 0.00 0.03 0.02 0.02 0.01 0.44 0.06 0.06 0.21 0.03 0.03 0.52 0.14 0.02 0.10 0.01 0.00 0.38 0.03 0.02 0.00 0.01 1.59 0.06 0.06 0.21 0.03 0.03 0.06 0.04 0.02 0.01 0.01 0.00 0.02 0.03 0.02 0.00 0.01 1.13 0.04 0.04 0.18 0.06 0.06 0.57 0.15 0.03 0.11 0.01 0.00 0.42 0.03 0.02 0.01 0.00 1.92 0.04 0.04 0.18 0.05 0.05 0.07 0.04 0.02 0.01 0.01 0.00 0.03 0.03 0.02 0.01 0.00 1.40 (*) Provisional accrual, (**) Initial credit Source: analysis based on data from the Directorate of Consolidated Social Expenditure “Public Expenditure on Human Development in Argentina.” By Damián Bonari, Marcelo Becerra and Ariel 49 Fiszbein. World Bank Office for Argentina, Chile, Paraguay and Uruguay –Working Paper N.03/04 Table A.16.1 National Government Public Expenditure on Social Insurance, 2001-2003 In millions of pesos 2001 Total Net Expend. Expend. 249.11 249.11 15,832.46 15,690.20 15.832,46 15.690,20 609.00 609.00 1,807.95 1,807.95 353.70 353.70 2,389.23 2,389.23 3,973.84 3,973.84 Item Administration of ANSES, SSS, etc. Retirement and Pensions National (including ex-provincial funds) Provincial Subsidies Family Benefits Unemployment Insurance PAM I Health Insurers Total 25,215.30 2002* Total Net Expend. Expend. 308.93 308.93 16,088.16 15,852.49 16.088,16 15.852,49 25,073.04 2003** Total Net Expend. Expend. 321.11 321.11 17,720.49 17,270.09 17.720,49 17.270,09 545.03 1,649.53 472.33 2,623.97 3,893.89 545.03 1,649.53 472.33 2,623.97 3,893.89 878.57 1,770.00 502.08 3,148.77 4,175.01 878.57 1,770.00 502.08 3,148.77 4,175.01 25,581.84 25,346.17 28,516.03 28,065.63 (*) Provisional accrual, (**) Initial credit Source: analysis based on data from the Directorate of Consolidated Social Expenditure Table A.16.2 National Government Public Expenditure on Social Insurance, 2001-2003 As a % of GDP Item Administration of ANSES, SSS, etc. Retirement and Pensions National (including ex-provincial funds) Provincial Subsidies Family Benefits Unemployment Insurance PAM I Health Insurers Total 2001 2002* 2003** Total Net Total Net Total Net Expend. Expend. Expend. Expend. Expend. Expend. 0.09 0.09 0.10 0.10 0.09 0.09 5.89 5.84 5.14 5.06 4.83 4.71 5.89 5.84 5.14 5.06 4.83 4.71 0.23 0.23 0.17 0.17 0.24 0.24 0.67 0.67 0.53 0.53 0.48 0.48 0.13 0.13 0.15 0.15 0.14 0.14 0.89 0.84 0.84 0.86 0.86 0.89 1.48 1.48 1.24 1.24 1.14 1.14 9.38 9.33 8.17 8.10 7.77 7.65 (*) Provisional accrual, (**) Initial credit Source: analysis based on data from the Directorate of Consolidated Social Expenditure Table A.17 Price Index and GDP, 2000-2003 2000 Wholesale Price Index Consumer Price Index Combined Price Index GDP in millions of pesos 2001 2002 2003 1.02 1.01 1.02 1.00 1.00 1.00 1.77 1.27 1.52 2.13 1.45 1.79 284,204 268,697 313,039 366,884 Data for 2003 is estimated. Source: analysis based on data from the Directorate of Consolidated Social Expenditure “Public Expenditure on Human Development in Argentina.” By Damián Bonari, Marcelo Becerra and Ariel 50 Fiszbein. World Bank Office for Argentina, Chile, Paraguay and Uruguay –Working Paper N.03/04 Bibliography 1. BECERRA, M., ESPAÑA, S. and FISZBEIN, A. (2003). Expenditure on Basic Education in Argentina and Aspects of Allocation Efficiency. World Bank. Washington D.C. 2. DGSC (2001a). Characterization and Evolution of Social Public Expenditure 2000. Secretariat of Economic Policy. Ministry of Economy. Buenos Aires. 3. DGSC (2001b). Report on Provincial Employment Programs. Secretariat of Economy. Ministry of Economy. Buenos Aires. 4. DGSC (2003). Report on Employment Programs of Provincial Execution. Secretariat of Economic Policy. Ministry of Economy. Buenos Aires. 5. DNPGS (1999a). Characterization and Evolution of Social Public Expenditure 1980-1997. Secretariat of Economic and Regional Programming. Ministry of Economy. Buenos Aires. 6. DNPGS (1999b). Characterization and Evolution of Social Public Expenditure 1999. Secretariat of Economic and Regional Programming. Ministry of Economy. Buenos Aires. 7. NATIONAL BUDGET OFFICE (2002). National Budget 2002 – Law N° 25.565. Secretariat of Economy. Ministry of Economy. Buenos Aires. 8. PORTO, A. and SANGUINETTI, P. (1997). “Fiscal Decentralization, Inter.-Governmental Transfers and Regional and Personal Income Distribution: Situation in Latin America.” In Fiscal Decentralization in Latin America. CEPAL. Santiago de Chile. 9. WORLD BANK (2003). Argentina: Reforming Policies and Institutions for Efficiency and Equity of Public Expenditures. Argentina, Chile, Paraguay & Uruguay Country Management Unit. Buenos Aires. wb164040 C:\WORKING PAPERS\Report 29005 - Public Expenditure on Human Development in Argentina -.doc January 24, 2005 5:25 PM i The authors would like to acknowledge the valuable contribution of Evelina Bertranou and Caterina Colombo in the preparation of this document, and of Sabrina Reichler in the preparation of figures with the aid of Julia Frenkel, Ariela Goldschmit and Ighal Low. All of them are part of the Directorate of Consolidated Social Expenditure. The authors also acknowledge the valuable comments and contributions of Oscar Cetrangolo, Rafael Rofman, Marcelo Harriague and Juan Pablo Jiménez. ii The preparation of the data used in this document was finalized in April 2003. National government figures for 2002 are provisional, and those of 2003 correspond to the initial credit budget stage; for provinces as a whole, figures are provisional for the period 2000- 2001 and they are estimated for 2002. iii To get the value of data in real terms, a combined price index is used. It is formed by the general wholesale price index and the consumer price index in equal parts. For more details see table A.17 in the annex. iv For more details on consolidation methodology see DNPGS (1999a and 1999b) and DGSC (2001a). “Public Expenditure on Human Development in Argentina.” By Damián Bonari, Marcelo Becerra and Ariel 51 Fiszbein. World Bank Office for Argentina, Chile, Paraguay and Uruguay –Working Paper N.03/04 v GPDH is executed by the National Government, the provinces and municipalities. Although in GPSC municipal government expenditure is taken into account, it is not included in GPDH as from this point due to lack of information with the necessary disaggregation for our analysis. vi Social Insurance is a wider area than Social Security as it is used in DGSC classifications, because it comprises items that do not belong to social security and are executed through ANSeS, and that DGSC includes in the Labor function – Unemployment Insurance and Family Benefits– as well as expenditure that DGSC classifies under the Health function. vii Buenos Aires City is considered as a province. viii To analyze the 2000/2001 period, the average of both years is presented, as the structure of expenditure in terms of government level and programs is very similar, as it is observed in the tables and in the Statistical Annex. ix Article 5 of the Argentine Constitution establishes that each province will have its own Constitution that is to ensure the administration of justice and the provision of primary education. x The program Fight Against AIDS and Sexually Transmitted Diseases is divided into two parts: expenditure on drugs is included in Provision of Health Care, while expenditure on prevention campaigns is allocated to Public Health Programs. Due to the lack of accurate information, in the Assistance to PNC Beneficiaries program –PROFE– transfers to private providers are considered as national expenditure (Buenos Aires City and Buenos Aires Province, and a small percentage of the rest of the provinces), and transfers to the different entities in provincial governments are considered as provincial expenditure. Transfers to PAMI are included in the Social Insurance sector. xi Expenditure on provincial employment offices cannot be disaggregated and it is therefore included in provincial expenditure on employment programs. Expenditure on the Food Emergency Program corresponds to the Unidos food program, which in 2000 included ProHuerta. xii According to Law Nº 23.966, 11% of VAT is allocated to social security: 93.7% is allocated to the National Social Security Regime (SIJP) and 6.3% to provincial and municipal social security funds. Besides, 6.3% of the tax on personal assets is also allocated to social security, after 3 millions are deducted an allocated to INCUCAI annually. xiii Other aspects of financing, such as the distinction between internal and external financing, are not analyzed in this document. xiv For different classifications of GPSC, see (1999a and 1999b) and DGSC (2001a). xv It includes: tariffs subsidy, complementary subsidy and internments for retirees and pensioners. xvi It is worth noting that 15% of co-participation taxes is pre-distributed (“pre-coparticipados”) to finance the social security deficit. xvii In this section national government expenditure refers to total expenditures and therefore includes transfers to provinces. xviii However, Law N° 25.733 of March 2003 establishes that FONID is to distribute $726 millions from 2002 and $750 millions from the 2003 budget, although these funds will be distributed if the corresponding revenue is available. xix This program was created in 2002, but its percentage of accrual was low. In 2003, its budget increased significantly. Its characteristics are explained in detail in the following section. xx In 2003, Health Care to PNC Beneficiaries becomes activity 6 of the Health Care Development Support program, executed by the Ministry of Health. Previously, it belonged to the Ministry of Social Development. xxi In 2002 this program was called Care for Vulnerable Groups and was activity 7 of the Elders and Social Action/ Social Action for the Elderly Program. These changes are described in section II.1.1. xxii This increase is due to the fact that in 2003 Decrees N° 896 and N° 926, which established a 13% reduction on social security payments were abolished. xxiii For further details see DGSC (2001b and 2003). xxiv In May 2002 the unemployment rate reached 21.5% and the incidence rate rose to 53.0% of the population, while in May 2001 those rates were 16.4% and 35.9% respectively. “Public Expenditure on Human Development in Argentina.” By Damián Bonari, Marcelo Becerra and Ariel 52 Fiszbein. View publication stats