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Argentina Plows Ahead With Utility-Subsidy Cuts Key to IMF Deal

  • Government expects to save 0.5% GDP in 2023 from subsidy cuts
  • Reducing energy subsidies key element of Argentina’s IMF deal
Natural gas burns on a domestic kitchen stove.

Natural gas burns on a domestic kitchen stove.

Photographer: Alessia Pierdomenico/Bloomberg

Argentina is moving forward with subsidy cuts on utility bills in a bid to comply with its $44 billion program with the International Monetary Fund despite the political costs. 

Officials rolled out the details of the subsidy squeeze they estimate will save fiscal spending equivalent to 0.5% of gross domestic product next year, according to Treasury Secretary Raul Rigo, who spoke alongside other officials at a Tuesday press conference. Rigo estimated savings from the reductions this year would be about “a third” of next year’s figure.