Argentina Govt Scraps Subsidies to Cut Spending by $933 Mln

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articlenopic By Charles Newbery for Mninews.deutsche-boerse.com

BUENOS AIRES (MNI) - Argentina officials announced Wednesday the government will eliminate a series of subsidies, for big energy companies and the rich, in a latest move to reduce public spending.

The cuts will save the state nearly 4 billion pesos ($933 million) a year, which in addition to the savings of 600 million pesos in a previous round of subsidy cuts early this month takes the total annual savings to 4.6 billion, Economy Minister
Amado Boudou said in a televised press conference.

The latest purge will eliminate all subsidies for the 40 biggest corporations in agrochemicals, biofuels, natural gas processing and oil refining to save the state 3.5 billion pesos a year, starting Dec. 1, he said.

Boudou said small- and medium-sized companies will not be affected because they are key for job and salary growth.

The total cuts are equivalent to 6.5% of the estimated... Read Full Article

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