Allende & Brea – Estudio Jurídico

First economic announcements from the Ministry of Economy

Primeros anuncios económicos del Ministro de Economía - Allende & Brea
On December 13, 2023, through his Minister of Economy, the current President, Javier Milei, announced the first government measures to be taken.

According to the current government in power, the measures would be as follows:

  1. State employment contracts with less than 1 year of validity will not be renewed;
  2. The official advertising of the National Government (Presidency and ministries) will be suspended for 1 year. This includes the budget allocated for promoting the management of the national administration, state-owned companies or entities, decentralized bodies with majority government participation, or other government-affiliated organizations;
  3. The number of Ministries has been reduced from 18 to 9, and the number of Secretariats from 106 to 54.
  4. Discretionary transfers from the National State to the provinces, which are funds sent by the National Executive Power to the provinces without being regulated by norms and distributive mechanisms, will be minimized;
  5. There will be no new public works bidding, and approved tenders whose development has not yet commenced will be canceled;
  6. Subsidies for energy and transportation will be reduced, leading to an increase in national electricity and gas tariffs, and in the AMBA, for buses and trains;
  7. The Potenciar Trabajo programs will be maintained in accordance with the 2023 Budget, and there will be reinforcement for the Asignación Universal por Hijo (known as “AUH”), which will be doubled. Additionally, the Tarjeta Alimentar will see a 50% increase;
  8. The official exchange rate will be devalued, reaching ARS 800 per US dollar. Additionally, this measure will be accompanied by a temporary increase in the PAIS tax (tax on the purchase of foreign currency, expenses with debit and credit cards in foreign currency, and tourist services abroad) for imports and non-agricultural export duties;
  9. Export duties will be eliminated once the economic emergency is concluded; and
  10. The Import System of the Argentine Republic (commonly known as SIRA) will be replaced by a statistical and information system that does not require license approval, aiming to eliminate discretion and ensure transparency in the process;

This report cannot be considered as legal or any other kind of advice by Allende & Brea. For any questions, do not hesitate to contact us.

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