The state spends more on economic subsidies than on salaries
The FMI’s evaluation of the loans granted in 2018 motivated a heated exchange of accusations. But the most important conclusion is that the core of the problem is the persistence of unsustainable fiscal deficits. To correct them, the urgency is not to lower public wages spending but economic subsidies.(more…)
Subsidies cover more than half of the electricity cost
In the parliamentary procedure that ended in the rejection of the 2022 budget, cross accusations prevailed. It would be much more appropriate to focus on avoiding a deepening of the crisis. A key and urgent issue is to stop the exponential increase in energy subsidies.(more…)
The central bank must be banned from issuing Leliqs and repos
The mechanism by which the Central Bank covers the fiscal deficit and then absorbs the excess of money issuance with Leliqs and repos is running out of steam. Besides being unsustainable, it is a very regressive use of public funds. To eliminate it, the fiscal deficit must be lowered. To this end, reducing utitility subsidies is key.(more…)
Habitualmente al hablar del congelamiento tarifario y sus consecuentes subsidios se analiza el impacto que los mismos tienen en la inflación y el desequilibrio de precios que ocasionan. Sin embargo, se deja de lado, un factor no menor que ha quedado reflejado la semana previa. El congelamiento tarifario implica también la imposibilidad por parte de los proveedores de servicios públicos de aumentar precios que permitan incentivar y cubrir los costos de nuevas inversiones.
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