The Argentine government announces the end of public works spending and the devaluation of the peso by 50%

Argentina’s Economy Minister Luis Caputo announced a series on Tuesday “Emergency measures among which stand out the devaluation of the peso Argentina with more than 50%, the end of the expenditure on new public worksthe reduction of energy and transport subsidies, and an increase in social assistance.

So the country’s currency will change from 366.45 to 800 pesos for every dollar American, Caputo said in a speech by the Argentinian news agency Télam.

During his speech, the minister assured that it is the country’s biggest problem “the budget deficit” and that these measures are aimed at solving this problem “Avoid a Catastrophe”.

“The government is coming to tackle this problem at its root, so as not to suffer even more inflation and poverty,” Caputo said, adding that despite the austerity policies on public spending, they are “continuing the ‘Boost Work’ plans according to the 2023 plans will maintain. budget.” “and will double both the universal child benefit and the ‘Food Card’.

Other measures aimed at reducing government spending include “not renewing state labor contracts that are less than one year old” and suspending state advertising for a year.

Moreover, he confirmed that the state will no longer issue tenders for new public works and the cancellation of works already approved but not yet started, because “there is no money to pay for works that often end up in the pockets of politicians.” and businessmen.” “.

Regarding the reduction of subsidies for energy and transport, the portfolio head explained that maintaining “very low prices” in these sectors is achieved by “paying for it with inflation”.