Post by account_disabled on Feb 20, 2024 18:48:55 GMT 8
The Government continues to review numbers and evaluate measures after the leap into the void that the negotiation of the fiscal adjustment in Congress meant. Without the support of the governors, the Minister of Economy, Luis Caputo, is preparing a new spending cuts to compensate for the fall of the fiscal package. provided for in the omnibus law and reach the “zero” financial deficit agreed with the Monetary Fund. «If we are going to give up income, Naturally we are going to have to reduce expenses, including Nation and also income. "This is everything that makes up the fiscal package, we are going to withdraw it, we will evaluate new measures and we will try to reach a consensus on them with governors and legislators in the future," the official said on Friday at a press conference.
Conference from Casa Rosada. This is a different roadmap than the one he presented in December when he launched a battery of announcements, and without the political support -immediate- that he had promised Asia Mobile Number List both the White House and the IMF. For this reason, according to sources from La Libertad Avanza, the Executive is studying a new tax bill for later. Tomorrow there could be news at the meeting of the ruling bloc. In parallel, the Economy began to review items ranging from discretionary transfers to the provinces to subsidies for rates and retirement benefits. The objective is to counteract the reversal in the increase in withholdings, the increase in the personal income tax floor and money laundering, as well as the shipwreck of the new pension formula in the omnibus law. In total, almost 2 points of GDP. Caputo set out to eliminate the financial deficit, which last year ended up being 6.1% of GDP, almost one point above the 5.2% predicted by the minister.
This result, caused by a primary deficit of 2.9% and the jump in debt interest to 3.2% due to the indexation of bonds in pesos to inflation and the dollar, adds greater difficulties to the government. In this context, the minister's announcement on Friday generated uncertainty and disorientation among some governors and allied blocs . It is not surprising: the provinces could lose a fund of almost $2 billion, which are the discretionary resources they receive from contributions from the Treasury, national programs, funds for pension funds and public works, among others. The district that would be most affected in the event of a cut in those funds that run outside of co-participation is the province of Buenos Aires. Caputo will have more power with the Ministry of Infrastructure under his orbit, after the displacement of Guillermo Ferraro. They could also freeze the progress of the co-participation distribution and raise the fuel tax. Another key element will be subsidies. Tomorrow will be the second hearing to define the new electricity rates and the transporters will present their claims, while on Thursday the increase in transportation and gas rates of up to 600 and 250%, respectively, should come into force. The Government has yet to define the elimination of subsidies, which could increase rates even further.
Conference from Casa Rosada. This is a different roadmap than the one he presented in December when he launched a battery of announcements, and without the political support -immediate- that he had promised Asia Mobile Number List both the White House and the IMF. For this reason, according to sources from La Libertad Avanza, the Executive is studying a new tax bill for later. Tomorrow there could be news at the meeting of the ruling bloc. In parallel, the Economy began to review items ranging from discretionary transfers to the provinces to subsidies for rates and retirement benefits. The objective is to counteract the reversal in the increase in withholdings, the increase in the personal income tax floor and money laundering, as well as the shipwreck of the new pension formula in the omnibus law. In total, almost 2 points of GDP. Caputo set out to eliminate the financial deficit, which last year ended up being 6.1% of GDP, almost one point above the 5.2% predicted by the minister.
This result, caused by a primary deficit of 2.9% and the jump in debt interest to 3.2% due to the indexation of bonds in pesos to inflation and the dollar, adds greater difficulties to the government. In this context, the minister's announcement on Friday generated uncertainty and disorientation among some governors and allied blocs . It is not surprising: the provinces could lose a fund of almost $2 billion, which are the discretionary resources they receive from contributions from the Treasury, national programs, funds for pension funds and public works, among others. The district that would be most affected in the event of a cut in those funds that run outside of co-participation is the province of Buenos Aires. Caputo will have more power with the Ministry of Infrastructure under his orbit, after the displacement of Guillermo Ferraro. They could also freeze the progress of the co-participation distribution and raise the fuel tax. Another key element will be subsidies. Tomorrow will be the second hearing to define the new electricity rates and the transporters will present their claims, while on Thursday the increase in transportation and gas rates of up to 600 and 250%, respectively, should come into force. The Government has yet to define the elimination of subsidies, which could increase rates even further.