| News Stories - Argentina's public spending
bill |
|
|
|
|
|
|
|
|
| When the
IMF signed a three-year loan deal with Argentina last September,
it came with strings attached. One
of these was to rein in public spending
from Argentina's 24 provinces whose profligacy
contributed to the country's economic crisis and debt
default some two and a half years ago.
The new fiscal responsibility
law means that local governments won't be able to increase public
spending by any more than the rate of economic growth. And
in a bid to prevent Argentina's provinces from
running up too much debt, only a maximum of fifteen percent
of their public spending will be able to come from borrowings.
Any provinces breaching these limits
could face financial penalties.
Some opponents of the bill said their government has bowed
to pressure from the IMF at the expense of Argentina. Others
say the law doesn't go far enough because it doesn't force the
provinces to reduce public spending when the economy
shrinks.
|
|
|
|
with strings attached: with a number
of conditions
to rein in: to control, limit or
restrain
profligacy: here, careless waste
of money
debt default: failure to pay back
the money owed
fiscal: to do with public money
in a bid: trying, attempting
running up: accumulating quickly
breaching: failing to observe,
going above
bowed to: conceded as a result
of
shrinks: declines, grows smaller
|
|
