On Friday, Economy Minister Luis Caputo stated that Argentine President Javier Milei excluded the primary measures of austerity from his extensive reform bill to ensure its passage in Congress, suggesting the possibility of more significant reductions in government spending later on.
Caputo mentioned during a press conference at the Casa Rosada presidential palace on Friday evening that they will allocate additional time to find ways to improve the fiscal situation for Argentines. He emphasized their commitment to achieving the goal of a zero deficit.
Caputo mentioned that the fiscal section of the bill, which he claimed would be completely eliminated, contained raised taxes on significant exports like derivatives of soy, as well as grains and corn. Additionally, the government will not be including a proposed adjustment to pensions and an increment in income tax.
The tax and pension measures were the main challenges that stood in the way of the bill being approved.
Milei’s proposed legislation, which aims to privatize many companies and increase his authority in economic affairs, narrowly gained approval from three congressional committees this week. The bill received support from 55 lawmakers, although 34 of them expressed some disagreement. This leaves room for them to potentially vote against the bill if its most controversial provisions are not altered.
On Wednesday, a massive number of Argentine citizens gathered in Buenos Aires to express their opposition towards Milei’s economic measures. These protests were planned and coordinated by influential labor unions in the country.
Caputo assured that now that the tax aspect has been resolved, the bill will successfully progress through Congress. He stated that the executive branch has come to a definite agreement on the crucial components of the bill apart from the fiscal chapter. These components involve privatizing numerous companies, except for YPF SA, an oil company.
Caputo stated that the remaining 500+ articles signify a “structural change” in Argentina, which will facilitate economic growth.
The bill is anticipated to be voted on by Argentina’s lower house Chamber of Deputies, possibly as soon as next Tuesday.
Caputo has also stated to the media that he will assume the duties of Guillermo Ferraro, who was dismissed as Infrastructure Minister earlier this week.
