Subsidies
The evidence that the subsidies to the Río Turbio coal mine were used in an obscure way are more than 10 years old. The opportunism of the Judicial System and a large part of the ruling class, allowed billions of dollars to be squandered and diverted to spurious ends. Given this failure, it is pertinent to warn that the solution is not to put honest and competent officials to administer the coal mine but to use public funds to reconvert the workers who were deluded with an unrealistic project.
VER
The extraordinary growth of public spending in recent years is the main cause of high inflation and exchange rate volatility. Curiously the areas which are the main contributors to the fiscal overflow and need more reforms are not directly affected by the cabinet change. Without a revision of public spending decisions, which are currently made with an important share of demagogy, improvisation and little responsibility, it will not be possible to stop the loss of reserves and stimulate the economic growth.
VER
Through a norm thought to be used only in case of emergency –a decree of necessity and urgency– the government made explicit that the public spending is growing out of control. The fiscal deficit is one of the main causes of inflation, which put pressure on the exchange rate. Even with some mitigating measures, such as the introduction of a multiple exchange rate system, the pending problem is still the high fiscal deficit. Since it´s no longer possible to increase the tax burden, the only solution is to reduce subsidies to public and private companies.
VER
