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Politics X-ray of social programs: how inflation impacted them, how many people charge them and what Milei's strategy is - Infobae

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X-ray of social programs: how inflation impacted them, how many people charge them and what Milei's strategy is - Infobae​


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March 17, 2024


Social economic aid increased by more than 25% during the last year. In parallel, the Government announced the elimination of programs and the reduction of beneficiaries

By Sofia Santillan

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During the first month of the year, the Government reduced the budget for family allowances by 17.7% (ANCCOM)
Since Javier Milei assumed the Presidency a little over three months ago, the focus of the administration has been on the economic sphere and the distribution of state funds. Until now, the plan drawn up by the Ministry of Human Capital aimed to refine the number of beneficiaries registered in social programs , in order to eliminate those who present incompatibilities with the regulations. In contrast, the increase in inflation over the last year slowed down the economic plan by forcing the amounts assigned to benefit holders to be readjusted.

The latest report published by the National Institute of Statistics and Censuses (Indec) revealed that the accumulated percentage in February was 13.2%, while in the last year it accumulated 276.2%. In January 2023, the organization registered a variation of 6%, a figure that increased gradually until closing the year with 25.5%. As if it were a mirror, the upward movement was also replicated in social aid: monthly payments suffered an adjustment of 29.63%.


In this way, the amount received monthly by each holder jumped between the first month of last year and February 2024, according to the reports published by the Information, Evaluation and Monitoring System of Social Programs (SIEMPRO). As an example, a person enrolled in the Universal Child Allowance (AUH) regime went from receiving $9,795 to a total of $33,058 and for someone who had a disabled minor under their care, the digit was transformed from $31,900 to $107,646.

The increase in the budget that was allocated for social assistance during the former administration generated friction with the objective set by the current Government, which has already adopted a series of measures to counteract them. In fact, the Congressional Budget Office detailed that in the first month of the year, expenses on family allowances were reduced by 17.7% ($255,009) and by 59.6% on other programs ($152,020).

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With the reduction of the maximum income limit, the Government will seek to concentrate state aid on the most vulnerable sectors

Another benefit that became a pillar in terms of assistance for those sectors that find it difficult to cover the expenses of the Basic Food Basket (CBA) was the Alimentar Program , popularly recognized as the Alimentar Card , because it was It constituted the most efficient state policy by allowing families to access food of better nutritional quality.

After the current administration approved the benefit, it will receive a budget of one trillion five hundred and eighty-eight billion ($1,588,000,000,000) throughout the year. The amount assigned to the program will represent 90% of the curriculum and it had a 100% increase at the end of January, in order to alleviate the deterioration caused by the increase in inflation in the purchasing capacity of the holders.

In this way, the Ministry of Human Capital determined that families with only one child would earn a minimum of $44,000 per month; $69,000 for beneficiaries who have two children; and a maximum of $91,000 for family groups made up of three or more minors. As a result of the incentive, 132 billion pesos were allocated last month to guarantee that the benefit reaches all those registered.

Currently, the Alimentar Card has a total of 3.8 million people who benefit from social assistance, without the need for an intermediary. “As a Government we committed to eliminating intermediation and we are doing so,” they pointed out about the disengagement of social organizations with respect to the delivery of food to soup kitchens and the management of social plans.

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90% of the budget corresponding to the coverage of social plans will be allocated to the Alimentar Program (Facebook)
For her part, the Minister of Human Capital, Sandra Pettovello , has already implemented several modifications that will allow focusing on vulnerable social groups that require state aid. One of the key changes involved a reduction in the acceptable income limit to enroll in social programs, since the income limit went from $1,980,000 to $1,077,403 and the maximum family limit fell from $3,960,000 to $2,154,806 .

Although the portfolio has not yet been able to obtain the first results generated by the reform of the requirements, it is expected that the number of registered people per social plan will decrease. Currently, the AUH has the largest number of holders with a total of 2,330,400 . However, people who have a child with a disability will be excluded from the cut, because this type of assistance does not have a salary cap.

So far, the most significant changes made by the head of the portfolio targeted the former program known as Potenciar Trabajo , whose elimination was made official on March 6. The measure responds to the initiative to segment the 1,273,424 people who were registered in the new plans to be implemented into two groups: “Return to Work” and “Social Accompaniment” .

In the case of Return to Work, the plan will include those who are most likely to find employment in the short term, while Social Support would include those who are in more vulnerable situations that would complicate reintegration into the world of work.

Consequently, the former beneficiaries of Empower Work received the $78,000 corresponding to March but, starting in April, the amount debited will depend on the category to which they were transferred.

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From the Ministry of Human Capital they explained that the dissolution of Empower Work was decided due to its lack of effectiveness
In a previous note with Infobae , Pettovello officials indicated that nearly one million people became part of Back to Work, while the remaining 400,000 who made up Social Accompaniment will receive a monthly payment and food aid.

At the same time, they reported that another 4,588 people were removed from the benefit after an investigation led by federal prosecutor Guillermo Marijuan determined that 9,413 of those registered were public employees. At the moment, the rest of the cases are under evaluation.

On the other hand, the Progresar Scholarships will continue to be in force, after rumors that indicated the possibility that they would be suspended. Until the second quarter of 2023, the program brought together 1,482,978 people, however, the number is not exempt from undergoing modifications, since the ANSES inaugurated the registration period that will end on March 31.

Compared to the other state benefits, the student allowance will be the only one that will maintain the same values that were established in August of last year. On that occasion, the monthly amount increased to $20,000, although only $16,000 is received net, because the organization retains 20% that is returned the following year, if the beneficiary meets the requirements to be part of the program again.
 
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