The electoral path in the United States has already begun for both Donald Trump and Joe Biden. A recurrence of the Republican candidate in his actions is the promise of tax reduction and criticism of the public spending of his opponent. Now him IMF joined those observations on the deficit control of the Democratic administration.
Gita Gopinathdeputy director of the organization and who has already held meetings with references from the Argentine government such as Javier Milei and Luis Caputostressed the importance of avoiding “the temptation to finance all spending with credit” and urged the Biden administration to move closer to “fiscal consolidation.”
The directive’s statements come after a report from the US Congress is known, where They predict fiscal deficits of between 5.2% and 6.3% of annual GDP over the next ten years with the current system of taxes and expenses. In this framework, they projected a 7.1% GDP deficit for 2025.
Interviewed in the British newspaper “The Financial Times”, Gopinath called for the establishment of progressive tax schemes that can be “implemented more effectively” and noted with concern the deficits of the two main global powers – the US and China -, involving “significant risks” to the global macroeconomy.
javier milei gina gopinath casa rosada
Gita Gopinath with Javier Milei at the Casa Rosada.
IMF: the Board will meet next Thursday to analyze the eighth review of the agreement
Finally, one month after approving the technical mission, the board of directors of the International Monetary Fund will meet next Thursday June 13, to address the report sent by the staff on the 8th. review, as confirmed to Ambit official sources in the Casa Rosada.
It is assumed that it will be approved by the Board of Directors since all the goals were met and almost immediately Argentina will receive a disbursement of approximately US$800 million.
It should be remembered that on May 13, through a statement signed by the deputy director of the Department of the Western Hemisphere, Luis Cubeddu; and the head of the Mission for Argentina, Ashvin Ahuja of the Monetary Fund’s technical team pointed out that: “despite the inherited economic and social situation, the firm implementation of the stabilization plan by the Argentine Government allowed the program to be firmly reestablished.” Likewise, he highlighted that it was possible to achievethe first quarterly fiscal surplus in 16 years, the rapid fall in inflation, the change in the trend of international reserves and a strong reduction in sovereign risk.”
Also, he highlighted that the Argentine Government “maintained the order of fiscal, monetary and exchange policies” while making reference to the statement that reforms are being implemented to “support economic recovery, as well as to address obstacles to productivity, private investment and formal employment.”
The organization stated that the results were “better than expected – all performance criteria – were over met.”
