He government of Javier Mileias he had mentioned in his election campaign, fulfilled his famous “chainsaw plan”which consists of cut public spending to the greatest extent possible. Therefore, the head of state had confirmed that they would cut subsidies in several areas and services were one of the sectors targeted.
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Therefore, and having reduced the subsidy on public transportation throughout the country, he decreed that in May they would do the same with the rates for the population’s essential services, such as gas and the light. However, It was decided to postpone the removal of subsidies for the rates of these services.
The Government decided to postpone the cut of subsidies to electricity and gas rates
This measure is purely and exclusively due to problems in the system when crossing and correcting data. Therefore, it was decided to postpone the subsidy cut from May, as planned, to June. Once the data is cross-checked to determine who needs state assistance, The cut that had been mentioned will continue.
One of the main ideas of the Government of Javier Milei is to create a Basic Energy Basket (CBE)which consists of determining the basic needs of energy consumption for each month of the year and depending on the geographical location.
In this sense, the proposed basket and the removal of subsidies for a portion of the population would begin to take effect in June or July, in the absence of official confirmation. It is estimated that the expenditure with energy subsidies is between 2,500 and 3,000 million dollars.
The Government had proposed to the International Monetary Fund that services such as electricity and gas would increase between 150% and 200%, in addition to the fact that starting in April the idea was for several households to begin paying the full rate. Only those people in vulnerable situations are subsidized.
