Milei Government Eliminates Energy Subsidies to SMEs and Businesses

March 4, 2024 Hour: 6:48 pm

In Argentina, the Ministry of Economy and the Ministry of Energy announced at the last public hearing the end of subsidies for light services to enterprises and small and medium-sized enterprises (SMEs).

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With the imposition of this measure, the Government will only support vulnerable sectors, affecting 100,000 companies.

Salvador Gil, an official of the Ministry of Energy, said about this new court: “The new scheme does not contain any subsidy to productive activities. It would not be compatible to subsidize energy and free prices”.

Regarding the Basic Energy Basket, Gil announced that “only basic human needs will be subsidized and when necessary”

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The reason for these actions in the words of officials such as Martin Vauthier, advisor in Economics, argued that, “in a context of scarce resources, subsidies to non-residential demand are eliminated, for example, in productive processes”.

The Interdisciplinary Institute of Political Economy (IIPE) of the University of Buenos Aires and CONICET affirm that the sector of commerce and SMEs has already been affected since the increase of excessive tariffs, However, with these measures the losses these companies will have and the effects they will have will be drastic.