“He wants go to Parliament”, Official sources say, referring to the will of the first president, since he considers that it would be “an opportunity to try to generate a new political culture in relation to public accounts”.
In this sense, government strategists are thinking about an extensive exhibition before the legislators, similar to the one the head of State made on the occasion of the opening of ordinary sessions on March 1st. The date scheduled for the presentation of the initiative is Monday September 16th coming.
Parliamentary sources, in response to a query by Scopethey point out that the President can accompany the Minister of Economy in the informative meetings of the Budget Commission, but they point out that the first president “It has no authority to call a legislative assembly to discuss the budget, it is not part of either formality or tradition.”
Doubts
Following the defeats that the Executive Branch has been suffering in Congress, there are problems in the National Government Doubts about Parliament’s final approval of the draft budget that are preparing to be sent. “In that case, the current one will be extended”a senior official told this newspaper.
The official assessment is that, in this scenario, The Executive will have a greater scope for actionbecause the items will be maintained in accordance with the 2023 budget (with the modifications that have been registered) and the resources will increase due to the expected economic recovery.
It should be remembered that, as anticipated ScopeThe President is personally dedicated to the drafting of this law, which he considers essential for the consolidation of his government program. “I designed a format that is not vulnerable to changes in the macro (economy),” Milei told his entourage in reference to the preparation of the budget project.
From this point of view, they explain that the intention of the first president is that, if for some reason the income were underestimated and in practice the resources of the State were higher than those expected, These surpluses will be used to lower taxes and not to increase spending, as has been done historically.
In the opposite scenario, that is, if the income estimate is lower than the actual one, the decision It will be cutting items because, of course, keep the financial deficit at zero (including payment of interest on debt) It is a central objectivethey point out in official media.
But they anticipate that these eventual cuts will not affect expenditures that the Government considers “rigid”, such as, for example, the pensions or resources for the most needy sectors.
The Executive’s initiative “will propose fiscal goals that are based on maintaining policies that support aggregate demand and an increase in fiscal resources along with an increase in activity, employment and real income, giving sustainability to the growth path in a context of fiscal deficit reduction,” as reported at the beginning of last July in the Progress Report on the Preparation of the Draft General Budget Law of the National Administration for Fiscal Year 2025.
Criteria
The Government takes into account four fundamental criteria: the maintenance of fiscal balance, the granting of social plans without intermediaries, the modernization and simplification of the State, and an increase in the allocations for defense and security.
The projections of the Casa Rosada contemplate sustained fiscal balance, deceleration of inflation, improvement of the Central Bank’s balance sheet and strengthening of international reserves.
Authorities point out that it is a priority to continue with the policy of zero deficitstrengthening the effectiveness and efficiency of public spending and emphasizing the reduction of political spending to prioritize sustaining the income of the most vulnerable sectors.
In this sense, the Executive ratifies the policies designed by the Ministry of Human Capital, which leads Sandra Pettovelloaimed at eliminating intermediation in plans, expanding social assistance to mothers and children in the most vulnerable sectors and protecting the purchasing power of pensions.
Regarding the role of the State, the official strategy is aimed at “making a modern, effective, efficient, simple and useful State for citizens, engaged in its essential functions for not to hinder the conditions for the development of the private sector, favouring free enterprise.”
In this sense, the tasks carried out by the Ministry of Deregulation and Transformation of the State, headed by Federico Sturzeneggerwhich seek to simplify actions and processes, digitizing and simplifying procedures, debureaucratizing and eliminating intermediaries.
As for the security and defense forces, The aim is to improve equipment both to maintain territorial sovereignty and to improve internal security by strengthening crime prevention and the investigation of organised crime, according to the official argument.
The authorities are also preparing the quantitative data that the project will contain (inflation and growth, among others). Official sources indicate that, given the achievements in fiscal matters in recent months, the 2025 budget “will be for the first time in many years a real roadmap”
Source: Ambito
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