ZCZC
BCN-25
ARGENTINA-BUDGET-IMF-LEAD
Argentina’s Senate approves austerity budget
BUENOS AIRES, Nov 15, 2018 (BSS/AFP) – Argentina’s Senate on Thursday gave
final approval to an unpopular austerity budget designed to meet the stiff
requirements of a $56 billion International Monetary Fund bailout.
The vote on the spending blueprint for 2019, which already passed the lower
house of congress last month, was 45 in favor, 24 against and one abstention.
Unions and civic groups protested all day outside the congress building
during a debate that lasted into the wee hours of Thursday.
The bailout is supposed to help Argentina recover from an economic crisis
that has seen the peso lose half of its value this year.
Inflation is forecast to finish the year at 40 percent and the economy is
expected to shrink by 2.6 percent.
Center-right President Mauricio Macri has pledged a swathe of cuts in
health, education, science, transportation, public works and culture to the
tune of $10 billion.
To halt the collapse of the peso back in April, Macri’s government reached
a bailout deal with the IMF, with which Argentina had practically severed
relations after defaulting on its foreign debt in 2001.
Street protests have reflected growing public anger after Macri slashed
traditionally safe civil service jobs as part of a bid to cut Argentina’s
fiscal deficit and tame inflation at the IMF’s behest.
The budget deficit was 3.9 percent of GDP last year. The government aims to
get it down to 2.7 percent in 2018 and zero by the end of next year.
BSS/AFP/HR/1410