IDEAS home Printed from
   My bibliography  Save this paper

Solvencia fiscal para la sustentabilidad del gasto social: Un desafío pendiente en Argentina
[Fiscal Solvency for the sustainability of social spending: A challenge pending in Argentina]


  • Gerardo, Uña
  • Nicolás, Bertello
  • Luciano, Strazza


One of the recurring problems faced by fiscal policy in Argentina is the difficulty of achieving a balanced path of long-term fiscal performance. The incentives and pressures generated in periods of public spending growth to accelerate rapidly, surpassing the growth rate of the economy. On the contrary, when it slows, the impact on public finances and the need for adjustments which it implies minimizes the potential for public sector response, thus increasing the recessionary effect of the cycle. This has a negative effect on the provision of public goods and services provided by the state, especially on social spending. In this framework, the implementation of a fiscal rule for Argentina-saving resources in times of growth for use in periods of recession, thereby enabling sustainability over time in social services, remains a necessary reform. Both the successful experience of Chile's Structural Balance of 2000, as the negative results of the Argentina Fiscal Responsibility Law of 2004, are valuable lessons. Specifically, it is possible to observe that the success of a fiscal rule in a relevant way affect at least three aspects: a) the emergence conditions of the rule and the consensus among stakeholders; b) the operation dynamics of the Rule for the economic cycle and c) its strength and technical simplicity. Thus, we propose a new fiscal rule in Argentina, that sets the budget surplus achievement based on trend GDP and the creation of three specific funds to allocate the cash surplus: i) Retirement and Pension Fund (FJP), ii) Fund of Social Policy (FPS) and iii) Stabilization Fund (SF). With regard to the budget surplus target, it should be deemed a savings rate to be applied when GDP is above its trend level. A number that represents 1.5% of trend GDP, considering the strong current restrictions could be used as initial parameter. With respect to the resources distribution to the Funds, it is proposed to spend from the cash surplus the 1% of trend GDP to the FJP given the greater weight to the new future budget obligations, the 0.5% of trend GDP to the FPS, and the balance, if any, would become part of the FE. Although the biggest impact of economic and social crisis of 2001 were left behind, there remains the challenge of achieving medium and long term fiscal sustainability in a context where social challenges in the area increases. This proposal seeks to promote the discussion of this topic so relevant to the equitable development of Argentina.

Suggested Citation

  • Gerardo, Uña & Nicolás, Bertello & Luciano, Strazza, 2009. "Solvencia fiscal para la sustentabilidad del gasto social: Un desafío pendiente en Argentina
    [Fiscal Solvency for the sustainability of social spending: A challenge pending in Argentina]
    ," MPRA Paper 23848, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:23848

    Download full text from publisher

    File URL:
    File Function: original version
    Download Restriction: no

    References listed on IDEAS

    1. Braun, Miguel & Gadano, Nicolás, 2007. "¿Para qué sirven las reglas fiscales?: un análisis crítico de la experiencia argentina," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
    Full references (including those not matched with items on IDEAS)

    More about this item


    fiscal policy; public finances; Solvencia fiscal; gasto social; fiscal solvency; social spending; Argentina Fiscal Responsibility Law; fiscal rule; budget surplus; Retirement and Pension Fund (FJP); Fund of Social Policy (FPS); Stabilization Fund (SF);

    JEL classification:

    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
    • A11 - General Economics and Teaching - - General Economics - - - Role of Economics; Role of Economists
    • H10 - Public Economics - - Structure and Scope of Government - - - General
    • R50 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - General
    • A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
    • H60 - Public Economics - - National Budget, Deficit, and Debt - - - General
    • A14 - General Economics and Teaching - - General Economics - - - Sociology of Economics


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:23848. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter) or (Rebekah McClure). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.