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Argentina’s House of Representatives is balking at the administration’s 2019 budget proposal that opposition senators say is a form of colonialism dictated by the IMF.
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After receiving the proposed national budget on Monday from Finance Minister Nicolas Dujovne, Worker Party representative Romina Del Pla accused the minister of being an IMF (International Monetary Fund) puppet.
"Dujovne is the author of a colonial budget dictated by the IMF," Del Pla said in full session on Monday.
Finance Minister Nicolas Dujovne gave a short presentation to the house defending the Mauricio Macri administration’s 2019 budget that looks to reduce its fiscal deficit to 1.3 percent of GDP in 2019 from its current 2.2 percent.
Budget details have not been publically disclosed, but Cambiemos legislators, who have the highest number of seats in the house, told Monday’s full session that the budget must pass quickly, and as is, or risk destabilizing the government.
"They tell us that we have to help ensure governance when ungovernability is produced by the government with its measures that favor a few, concentrate economic groups and go against the majority of Argentines," said left-leaning senator Alex Kicillof and former economic minister under President Cristina Fernandez (2007-2015).
"They hand us a sealed folder and tell us if it is not approved, discussed or changed, then the country breaks down? Well no, no. The IMF knows that this government has a congressional minority. It must realize then that if it brings (the budget) to Parliament it is to discuss it democratically." Congress “can’t be taken,” concluded Kicillof. The ruling party lacks congressional majority.
Just as Dujovne was telling Congress that he expects the economy to contract by 2.4 percent this year and by 0.5 percent in 2019, which experts predict will soon lead to a recession, the Argentine Central Bank was once again selling off the US$50 billion lent to it by the IMF.
The bank sold another US$3 billion on the wholesale currency market Monday hoping to increase the value of its own peso, which sits at about 39.5 to the dollar.
The peso increased by about a half percent on Monday as the IMF announced that last week’s meeting with Argentina was "productive." Dujovne went to Washington last week to ask for an advance on its IMF loan after it had already shed a third of the US$50 billion in two months.
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Talking to local media, opposition legislator, Felipe Sola said: "To say that (not passing the budget) is against governance isn’t true. … We have to vote in favor? That’s absurd," said the lawmaker. "The government is the one attacking institutionality, generating the disorder, the pain, and the desperation of the Argentines," added Sola.
Within the past two months alone the Macri administration has let go some 10,600 public workers, is planning to slash state education spending by US$99 million over the next year, and since 2017 has cut water, electricity and gas subsidies by over 1,000 percent in some areas of the country, pushing 40 percent of children into poverty, according to the United Nations, and making everyday purchases difficult for the working and middle class.
Remembering the previous economic crash 17 years ago incited by the country’s then IMF loan, Del Pla told Congress: "This budget was drafted under the dictates of IMF officials who came specifically to inspect the fine print. (This budget) reinforces the colonial subjection of Argentina to international financial capital. It is a budget that from it's inception is meant for national savings, not for education, health or public works — much less to industrialize the country. It services the payment of external debt," said Del Pla.
Massive anti-IMF protests were once again staged outside of Congress Monday as the proposal was discussed. Anti-austerity demonstrations by unions, social movements, and average citizens have been ongoing over the past year.
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