Argentina Plows Ahead With Utility-Subsidy Cuts Key to IMF Deal
- Government expects to save 0.5% GDP in 2023 from subsidy cuts
- Reducing energy subsidies key element of Argentina’s IMF deal
Natural gas burns on a domestic kitchen stove.
Photographer: Alessia Pierdomenico/BloombergThis article is for subscribers only.
Argentina is moving forward with subsidy cuts on utility bills in a bid to comply with its $44 billion program with the International Monetary Fund despite the political costs.
Officials rolled out the details of the subsidy squeeze they estimate will save fiscal spending equivalent to 0.5% of gross domestic product next year, according to Treasury Secretary Raul Rigo, who spoke alongside other officials at a Tuesday press conference. Rigo estimated savings from the reductions this year would be about “a third” of next year’s figure.