The vice minister of economic policy explained why the freezing of public services was not included in the package of measures to mitigate inflation.
The Government confirmed that after the General Elections, there will be an increase in electricity and gas rates. This was confirmed Gabriel Rubinstein Secretary of Economic Policy of the Ministry of Economy in television statements.
Asked about why the freeze of rates was not included in the package of measures to mitigate inflation, the official explained that the announcements were made in the “heat” of the inflation spike in August but that after October the increases will return. “The decision was made to postpone the increases of rates waiting for the situation to calm down and there is a planned increase in November, then the path will be resumed,” he indicated in Intratables.
Rates: what happened in September
This month there was a new increase in rates of public services, but only for users who fall into the high and middle income category, and for industries and businesses. The Secretary of Energy had confirmed in August that the increase in energy rates in the first week of September would be close to 11%.
However, the increase will be postponed. After being consulted about the upload, Rubenstein He referred to the “price remarkings” that occurred on the Monday after the STEP of August 13, and explained that, in that context, “the decision was made to postpone the rate increases waiting for the situation to calm down.” Despite the confirmation, the vice minister did not give details regarding how much the increase will be or to what categories will impact.
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Tariffs: the IMF’s request
In the Staff Report of the fifth and sixth review of the Extended Facilities agreement signed with the IMF at the end of July, andThe Government committed to “adjust electricity prices from September 1, for residential users of low and middle incomein accordance with legislation and agreed cost recovery objectives.” The same would apply to natural gas prices.
In any case, the Government maintains its optimism and, in the Budget 2024 that he sent to Congress, preserved the public sector deficit objective at 1.9%, since he is confident that the goal will be reached after the new redirection of the funds. energy subsidies, a cut in transfers and a review of capital spending. What happens after the elections with the unfreezing of rates will be key to passing the November review with the IMF and accessing the SDRs that remain for 2023.
Source: Ambito
