Registration for the segmentation of gas and electricity subsidies remains open. This implies that those who do not do so or receive a monthly income of more than $670,000 will have a reduction in the benefit.
Registration is done by completing the form on the website argentina.gob.ar/subsidios or at the posts of the Ministry of Energy in different points of the AMBA. According to government calculations, 7 out of 10 Argentines will continue to be subsidized in their electricity and gas services during May of this year.
According to the Undersecretary of Electric Power, Santiago Yanotti, this reduction in energy subsidies would be above the projections included in the program with the International Monetary Fund (IMF), which would be a substantive help to achieve a fiscal deficit that, according to the authorities of the agency, which is renegotiating the current agreement with Argentina.
According to the official’s declarations, a greater cut in subsidies than expected would allow this expense to be lowered to around 1% of GDP instead of the 1.5% estimated at the time of preparing the programs.
Spending on subsidies was one of the biggest objections made by the IMF and it is where the focus is to put public accounts back on track.
Last week, the resolution by which the subsidies for Tier 1 users were eliminated and the definitions of the generation portion for Tier 2 users were enabled. In 2022, the energy subsidies implied an expense of 1.9% of GDP, which was reduced to 1.5% by 2023. Now, that percentage wants to be brought to the 1% area.
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