Argentina to Present First ‘Truthful’ Budget, Prat-Gay Says

Argentina will present the first “truthful” budget to Congress in many years on Thursday, which will forecast growth of 3.5 percent in 2017, Finance Minister Alfonso Prat-Gay said.

The government is beginning to win the battle against inflation after the national statistics agency said on Tuesday that consumer prices rose 0.2 percent in August, the lowest measure this year, Prat-Gay said at an investment forum in Buenos Aires. The purchasing power of Argentines has improved in the past two months as inflation begins to slow below average wage increases, he said.

“Tomorrow we’re sending the budget to Congress and it will be the first in many years that the budget tells the truth because we have rectified our statistics,” Prat-Gay said during a speech.

Under former President Cristina Fernandez de Kirchner, private economists questioned the veracity of the budget saying the government projected unrealistic growth and inflation targets. President Mauricio Macri told Bloomberg on Tuesday that the government will ease its 2017 fiscal deficit target to 4 percent from 3.3 percent as it tries to pull the economy out of a protracted recession.