MercoPress. South Atlantic News Agency

Argentina's Executive economic emergency powers on hold

The Argentine Senate this week passed into law the 2008 budget and the Ministries bill, but delayed for next week's session the vote on the extension of the Economic Emergency bill and other tax bills.

The bill was supported by 37 senators from the ruling Victory Front-Peronist caucus, and 13 senators from the Radical party and provincial parties voted against it. The 2008 Budget forecasts 169,462 million Argentine pesos in fiscal revenues (17.9% increase on 2007) and 161,486 million Argentine pesos of expenditure (15.9% increase). The fiscal surplus is estimated at 27 billion and the trade surplus at 10 billion. Budget Committee Chairman Jorge Capitanich said this budget will "sustain the growth of the economy, the reduction of poverty and destitution, and the rise in employment". However Senator Gerardo Morales (Radical - Jujuy) said that "the cake is distributed worse every day; there is a disproportionate distribution in favor of provinces that are friendly to the administration". He added that the Radical caucus deplores "institutional erosion, such as the delegation of faculties and the 'superpowers'." The Senate also passed yesterday the Ministries bill reform with a unanimous vote. But the vote on the Economic Emergency bill extension and a bill extending the check and cigarette taxes was postponed for next week's session, which will be the first of the incoming administration of Mrs. Cristina Fernandez Kirchner. The Economic Emergency bill dates back to 2002 when the melting of the Argentine economy and the international default and has been used by President Nestor Kirchner administration to manage funds with limited Congressional participation. The opposition argues that after four years running of economic growth at an average 8.5% there's no need for such extraordinary powers. The fact the approval of the bill was delayed for a week also is evidence that not all Argentine provinces are satisfied with the discretional (and arm twisting) way funds are distributed by the Executive. The delay could also represent the first test for President Cristina Fernandez de Kirchner.