Nacionales (ingles) archivos - Page 11 of 29

Nacionales (ingles)

The new agreement with the IMF will also fail

Progress towards a new agreement with the IMF was announced. Once again, a gradualist strategy is chosen, which assumes that the fiscal deficit will be reduced because revenues will increase more than expenditures thanks to economic growth. It is the same inconsistency that led to the failure of the previous agreement. (more…)

In Argentina having fiscal deficits is a “State Policy”

The political “fracture” (la grieta) is blamed for the lack of consensus to establish “State policies” to promote development. However, spending in excess of income is a “State policy” in itself which enjoys broad consensus among the political parties. This is one of the main factors that explain Argentina’s decline. (more…)

Central Bank debt has doubled

The fiscal deficit of the national public sector is in the order of 5% of GDP. Most of it was financed with monetary printing which, since it is not entirely accepted by the public, had to be absorbed with Leliqs and repros. This generates an accelerated and unsustainable increase in the Central Bank’s debt. (more…)

Fiscal gradualism leads to high inflation and stagnation

The government said that an agreement with the IMF has been reached for a gradual reduction in the fiscal deficit, but not on the deadlines. The Argentine problem is the chronic propensity of the State to spend over its resources. This cannot be solved with gradualism but with a structural reform of the State. (more…)

Vat should absorb the sale tax

A new suspension of the provincial tax cuts accorded in the 2017 Fiscal Consensus was signed. The strategy of gradual reduction of distortive taxes and the rethinking of the provincial sale tax has failed. The permanent and definitive change should be the federal VAT absorbing the provincial sale tax. (more…)

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…)

Federal government contributes only 5% to basic education

UNESCO published the results of an educational evaluation of primary school students in Latin America. The level of degradation of Argentine education is frustrating. It is impossible to reverse this process as long as the focus remains on the federal government. The provinces are responsible for this service. (more…)

80% less in spent in tourism abroad whit credit cards

The government decided to prohibit the purchase of trips abroad with credit cards installments. The measure raised people’s rejections, although it has a low economic impact. This is explained because card payments abroad are far below what they were in 2017 before the exchange rate crisis broke out in 2018. (more…)