Macri has decided to reach the budget deficit target with the IMF despite the fall of its image – Noticiasdel6.com

There is not a single survey held by the government that demonstrates majority social support for the agreement reached with the International Monetary Fund. And there is not a single member of the national cabinet to support the Peronist governors for the 2019 budget which will include the objectives set out in the Memorandum of Understanding with the IMF. However, and despite such a political scenario that compromises his presidential reelection, Mauricio Macri has decided to go ahead in cuts in public spending to reach the target of the 1.3 budget deficit in 2019, which He accepted in June with the board of directors of the Fund.

Nicolás Dujovne held a new meeting with the Economic Cabinet and lowered a line that came directly from the presidential office: no minister will propose measures with the fiscal cost. This means that there will be no proposals to reduce the tax burden and that it will not be accepted that governors do not comply with the fiscal pact agreed with Casa Rosada. "Our top priority is the reduction of the budget deficit and all ministers agree that our main goal is the balance of public accounts of Argentina," said Dujovne

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Dujovne's proposal involves not only blocking any negotiations to lower a tax or a tax, but also ratifying the tariff schedule for electricity and gas. In this sense, while the government's positive rates are sordid, utility bills will be shipped with increases of almost 20%.

Macri badumes that his presidential reelection is at stake, but he has already chosen to abide by the agreements negotiated with the IMF. He believes that it is more important to restore Argentina's confidence in the world – in the time of Cristina Fernández – and raise its public image when every vote counts at the time of ballot. The president does not resign his power project: he takes a step in the medium term in the face of a complex economic situation and a Peronist opposition with atomized leadership.

With the decision not to lower taxes or to ease the tariff increase program, the national cabinet must make its own adjustment and include this adjustment in the 2019 budget. Each minister must contribute to its reduction of public spending and at the time of sending the draft budget to the deputies, the account must give the figure committed to the IMF: 1.3 deficit for next year.

Overall, the responsibility is not just ministers. There will be pruning of items sent to the provinces badigned to transportation. And the state labor cup will try to compensate with private public participation (PPP) projects, which have been working in the first four months of this year. If the governors do not accept the cut of subsidies from the national government to provincial transport, Macri has already decided to make this decision in solitude: there is no standard that requires it to fulfill this obligation. It is discretionary of the executive power.

Along with the elimination of national funds to subsidize all provincial transportation, the government decided to transfer AYSA to the province of Buenos Aires and the federal capital. The economy is minimal, but all adds up to reach the target of 1.3 budget deficit for 2019.

Macri knows that he is going through a narrow gorge. And that his bet to achieve the objectives of the IMF may jeopardize his presidential reelection. He chose to honor his formal promise in the United States, China, Japan, Germany, Russia, Canada, Brazil, Mexico and Britain, which were essential to reach an agreement with the Fund. By the end of 2019, Macri will be able to evaluate if his decision was correct. At this point, the margin is minimal.

Source: Infobae.