Javier Milei, the new president of Argentina, is not letting up. He was elected after a close race and began his term this month. He is working hard to fulfill his promise to reduce the size of the government.
Milei’s administration has already eliminated the majority of ministries. This move will streamline the government workforce to combat crippling inflation.
Since taking office in December 2010, the right-wing libertarian has announced a plan for Argentina’s economic system to be transformed, with a devaluation and a reduction of its value.
The authorities have announced that they will review the contracts of government employees hired before 2023. They said that this deadline was set to prevent outgoing presidents from padding payrolls in their final year.
Milei’s inflation is expected at 200 percent by the end of the year. He has pledged to reduce government regulations, cut payrolls, and allow privatizations in state-run industries to increase investments and exports.
Milei is determined to keep moving forward despite the protests raised about the cuts.
He stated that he wanted to begin the process of rebuilding a country and return freedom and autonomy to individuals.
Milei administration will review over one million social plans to detect and correct any irregularities. In parallel, 7,000 contracts are not to be renewed by 2024. Milei is committed to reducing government interference in the lives of Argentinians.
The move is part of Milei’s bigger agenda to stabilize the nation’s economy, which has been in chaos for years. It involves massive deregulation and reforms that are friendly to the market.
Milei’s Minister of Economy, announced Tuesday a series of economic emergency measures. Argentina’s goal is to achieve a balanced budget in 2024. That is the equivalent of cutting $1.4 trillion from its budget of $6 trillion.
Caputo said that the termination of all government employees who were hired in the last year was done to “stop the habitual political practices” where family members and friends are included before the end of a presidential term. ”
Government advertising has been suspended for a year. Caputo said that the money was not there to pay for expenses that were not strictly necessary or to fund media outlets created solely for praise of the government in power.
There will be a drop of more than 50% in the number of senior positions and a 34% decrease in the number.
All transfers of money except for the minimum will cease. Previously, these transfers were used to reward friends and buy political favors. Government jobs that they supported will also disappear with these transfers.
All public works contracts must be canceled unless work has begun on the project.
Subsidies for energy and transport will be cut. Transport subsidies are essentially a job-creation program.
Existing welfare programs will continue, but an emphasis will be placed on paying directly to recipients instead of through a complex web of intermediaries. Payments for child care and food will double.
The Argentine Peso has devalued by 54%.
Licenses and export and import quotas will be eliminated. Caputo said, “This eliminates the discretionary aspect of the approval process for imports and ensures transparency.” “Anyone who wishes to import can now do so.”
The rate of tax on the imports and exports of non-agricultural goods will be equal to that of agricultural products.
It is a simple and effective way to reduce the state’s wage bill. It will allow money to be spent in other areas.
This would make state operations more efficient. A leaner workforce could increase productivity and reduce bureaucracy. Milei’s reform commitment is demonstrated by this action, which paves the way for necessary changes in both the public and private sectors.