THE PROBLEM IS NOT THE DEBT BUT THE LOW CREDIBILITY

The government has achieved fiscal balance but is unable to manage its public debt effectively. The problem is not that the debt is high, but that credibility is low. The solution depends less on US aid than on the ruling party’s ability to agree with the opposition on the implementation of its government plan.         (more…)

TO CONTINUE REDUCING POVERTY, MANAGEMENT SHOULD BE STRENGTHENED

The reduction in poverty due to lower inflation highlights the importance of price stability. Now, the continuity of poverty reduction and social progress depends on strengthening technical and political management in the State functioning  in order to successfully advance structural reforms.         (more…)

UNANIMITY IS NOT NECESSARY TO CHANGE COPARTICIPATION

The law on automatic distribution of ATNs does not harm the nation. In fact, it is an opportunity to move toward a more rational federal organization scheme. This is further evidence that a simple law is sufficient to change coparticipation, without requiring the unanimous agreement of all provinces. (more…)

DISABILITY LAW MAY NOT HAVE FISCAL COST

Disability law is a compendium of mistakes, where the only winners are the opportunists. The law does not improve disability coverage and, if properly implemented, does not have fiscal costs. However, it damages the macroeconomy because it was perceived as a relaxation of the fiscal balance strategy.         (more…)

MASS LITIGATION CONSPIRES AGAINST JOB CREATION

A recent court ruling illustrates how spurious litigation operates in the occupational risk system. Past experience shows that it increases labor costs, curtailing the creation of formal employment. The solution lies in harmonizing the criteria applied by provincial courts in assessing labor disability.         (more…)

PENSION BONUS REPEATS THE SAME MISTAKE AS THE MORATORIUM

The opposition aims to overturn the presidential veto on the law that increases and perpetuates the bonus paid to pensioners with lower incomes. As with the moratorium, the bonus is financially costly and socially unfair because it is received by people who, due to other sources of income, are not in a vulnerable situation.         (more…)

STATE PEDIATRIC HEALTH IS THE RESPONSIBILITY OF THE PROVINCES

Congress is promoting a national pediatric emergency law that the executive threatens to veto. The main flaw in the law is not that it jeopardizes fiscal balance, but that it has no chance of improving pediatrics, since state health is the responsibility of the provinces.         (more…)

THE PROVINCIAL “FEDERAL SHOUT” IS AN OPPORTUNITY FOR THE GOVERNMENT

Five provinces have formed a front called “Grito Federal” (Federal Shout) to differentiate themselves from La Libertad Avanza and Kirchnerism. Beyond its impact on the upcoming elections, this front could play a strategic role in unlocking structural reforms, particularly the signing of a new fiscal coordination agreement.         (more…)

REDUCED EXPORT DUTIES COSTLY FOR THE TREASURY, LITTLE TO AGRIBUSINESS

The reduction in export duties represents a significant fiscal effort but provides little relief for agribusiness. In order to move more quickly toward eliminating taxes that reduce the competitiveness of domestic production, a more comprehensive approach involving provincial and municipal governments is needed.        

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14% OF UNREGISTERED EMPLOYEES ISSUE MONOTRIBUTO INVOICE

Hiring under the Monotributo scheme is often used to circumvent labor legislation. New data from INDEC show that this practice is common among larger firms where informality is very low. Among micro-enterprises, where informality is concentrated, the practice is not widespread.         (more…)