Argentina: Why is there controversy with Macri's measures?
The president of Argentina aims to balance the economy by reducing the number of his cabinet and increasing the tax processes of the country
"We can not spend more than we have", was one of the phrases with which the president of Argentina, Mauricio Macri, announced the measures he will take to try to get his nation out of the economic crisis that lives these days.
Leer en español: Argentina: ¿Por qué hay polémica con las medidas de Macri?
For some months, Argentina has seen several fiscal problems that include the devaluation of the Argentine peso against the dollar (98% so far in 2018, the newspaper La Vanguardia said). As well as the fall of agriculture and the local market, due to the worst drought that has occurred in "more than half a century", as Macri recalled.
Fewer ministers and more taxes
By means of an audio, of a little, more than 25 minutes, the first president of the Argentineans reported in full detail the situation and stressed that he made the decision to "reduce the number of ministries to less than half". The latter, not only as a way to counteract the crisis from the budget but also from the organization. In this way, the 22 ministries that now exist in the Argentine Government will become secretaries, the BBC states.
According to the newspaper La Nación de Argentina, in total, the ministries that will govern the country will be reduced to eleven. However, those that are eliminated will merge with each other or they will become secretaries in charge of the Presidency of the Republic as such or they will be part of the remaining ministries.
In that order, the new organization chart of Macri's cabinet is:
- Presidency with the environment and tourism secretariats.
- Chief of Staff, in charge of Marcos Peña, who will retain his place in said political position.
- Ministry of Finance with the Secretary of Energy.
- Ministry of Education, Culture, Science and Technology, these last two executed in the form of secretariats.
- Ministry of Production and Labor with the Secretariats of Agribusiness and Labor.
- Ministry of Health and Social Development with a special secretariat for health.
- Ministry of Defence
- Ministry of Transport
- Ministery of security
- Ministry of Interior
- Ministry of Justice
- Ministry of Foreign Affairs
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Likewise, Macri reported the introduction of an extraordinary tax for exports, which he considered "as bad, very bad", but necessary. "To cover what is missing during this transition, which has become an emergency, we are going to ask those who have the greatest capacity to contribute. I refer to those who export in Argentina, "said the head of the Executive during his speech for national television.
However, according to statements by the Minister of Finance, Nicolás Dujovne, the fiscal adjustment to exports will be "transitory" (2019-2020), in which "four pesos will be charged for each dollar exported in primary activities and services and three pesos per dollar for the rest of exports," explained La Vanguardia.
A problem of the past
However, Mauricio Macri did not hesitate to highlight that the problems presented by Argentina are not new at all, much less had its heyday during his administration. "What is happening to us now, could have happened in January 2016," said the president of the Argentines, accusing him of receiving "a state that spent much more than it collected".
In addition, he assured that the "euphoria" generated with his arrival in power and making decisions, which for many were "unpleasant", was the way to stop the path that, according to Macri, led Argentina to "be Venezuela".
He also blamed the bad moment and image of the country on cases of corruption such as the "scandal of the notebooks", corruption of bribes during the government of Cristina Fernández de Kirchner), which, the president said, "in the short term affects the image of the country and generates more doubts".
For the time being, news of the meeting that Minister Dujovne will have with the International Monetary Fund (IMF) is expected to solve as quickly as possible the loan that this international organization approved for Argentina last June. It is estimated that the amount is around 50 billion dollars, of which the IMF is expected to disburse the first 3 billion in the coming days, as reported by Clarín.
LatinAmerican Post | Christopher Ramírez Hernández
Translated from: 'Argentina: ¿Por qué hay polémica con las medidas de Macri?'