Sharjah24 – Reuters: Argentina's government said it will extend its 2021 budget on Friday after Congress rejected its new one in a slap to center-left President Alberto Fernandez as he tries to revive the economy and negotiate a new International Monetary Fund deal.
Economy Minister Martin Guzman said on Twitter that the president would extend the current budget and he criticized the conservative opposition for blocking the new bill.
"Unfortunately, the opposition decided to leave Argentina without a budget for the year 2022," he said. "It's a lack of collective responsibility that creates uncertainty when what we need is to continue building certainties."
Friday's rejection of the 2022 budget bill by the lower Chamber of Deputies threw the country's economic plan into disarray and created a potential jam for talks with the IMF over a new $45 billion program.
After a lengthy and at times heated debate, 132 deputies voted against the budget bill, with 121 in favor and one abstention.
Guzman said the rejection "weakens" Argentina at home and abroad and meant "rejecting the macroeconomic program that has been the basis of the negotiations with the IMF." "And, of course, that affects the negotiations."
According to the bill, the government had estimated an inflation rate of 33% in 2022 against just over 50% currently, an economic growth rate of 4%, and a primary fiscal deficit of 3.3% of GDP versus 6.5% in 2020.
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