Gabriel Rubinstein, economic portfolio official of the outgoing Government, analyzed the economic measures of the new Minister of Economy.
He former vice minister of Economy of Sergio Massa, Gabriel Rubinsteinbroke the silence after the assumption of Javier Milei as president of the Nation. Hours after the new head of the Treasury Palace, Luis Caputowill reveal his economic emergency packagewith a strong devaluation of the official dollar, believed that “there was a need for some corrections.”
“The economy was paralyzed“Rubinstein assured and analyzed that “the change of government implied a number of expectations”, since “it is very difficult to live with exchange gaps.” “It’s a game between reality and expectations. There came a time when no one used the official dollar for anything,” he added.
In this context, he recognized that “The need to keep accounts in order could not be avoided. On the other hand, a devaluation could not be avoided with such a high exchange rate gap.” He then analyzed: “Any program can work if you ensure that the free dollar, the CCL, does not rise or rises very stable, in order to reduce the exchange rate gap. For the Argentine economy to normalize “It is necessary to reduce the exchange gap”
Finally, he noted that “There are things that Milei leaves aside: the issue of dollarization, we don’t really know where. There are things that are reversed, like the Income Tax, the idea is to reverse it. There was an idea that the adjustments would be paid by the caste and now they are increases in taxes and fees”. “More fresh dollars are needed. Since they have not said anything, or say very little, it is not known,” she concluded.
Luis Caputo’s ads: one by one
1) Employment contracts are not renewed in the State that are valid for less than one year.
2) Suspension of the national government guideline for one year.
3) Reduction in the number of ministries (from 18 to 9) and secretariats (from 106 to 54).
4) Reduction of discretionary transfers to the provinces.
5) Elimination of public works tenders and suspension of the execution of those tendered that have not yet started.
6) Reduction of energy and transportation subsidies. “Today the State artificially maintains very low prices in tariffs,” he defined.
7) Freezing of the Enhance Work in Values 2023 plans.
8) Official dollar at $800. Increase in the PAIS Tax on imports and withholdings on non-agricultural exports.
9) Replacement of the SIRA with an import system without prior authorization.
10) Double the AUH and increase the Alimentar Card by 50%.
Source: Ambito
