BUENOS AIRES, Aug 29 (Reuters) – Argentina’s 2012 budget bill aims to cap public spending growth at 20 percent, below current rates of more than 35 percent, as state expenditure surges ahead of the October presidential election, according to a newspaper report on Monday.
The center-left government of President Cristina Fernandez, who looks almost certain to be re-elected, must submit its budget bill for next year to Congress by Sept. 15.
Financial daily El Cronista said Economy Ministry officials informed different ministers that spending growth should not exceed 20 percent in 2012, adding that government departments would then be able to seek extra funds to cover basic needs.
Argentina’s budgets in recent years have low-balled inflation, growth and revenue, allowing the government to spend «additional» income without congressional oversight.
Last year’s budget bill, which was never passed by the opposition-controlled Congress, estimated that total primary spending would jump just 17 percent this year. [ID:nN16252575]
El Cronista, which cited a source close to Treasury Secretary Juan Carlos Pezoa, said the 2012 budget bill forecasts inflation of less than 10 percent.
Previous budget bills have also estimated inflation at a similar level despite sharp criticism from opposition lawmakers and private economists, who say true inflation is running at more than 20 percent.
Source: Reuters