MercoPress. South Atlantic News Agency

Barrage of chaisaw decrees expected in Buenos Aires

If these cuts are not enacted by July 8, they will have to wait after the Oct. 26 mid-term elections, Sturzenegger explained

After President Javier Milei returned Saturday from a ten-day tour including key European cities plus Israel, Buenos Aires is bracing for a barrage of further chainsaw decrees aimed at cutting down State spending as the powers in this regard delegated onto the head of State are to expire on July 8.

According to local media, the Casa Rosada is drafting at least 13 decrees to reduce public spending, close or restructure state agencies, and centralize decision-making. Key sectors targeted include Health, Human Capital, Economy, Transportation, Agriculture, and Industry.

Agencies like the National Institute of Agricultural Technology (INTA), the National Service for Agri-Food Health and Quality (Servicio Nacional de Sanidad y Calidad Agroalimentaria - Senasa), the National Administration of Drugs, Food, and Medical Technology (Administración Nacional de Medicamentos, Alimentos y Tecnología Médica - Anmat), the National Civil Aviation Administration (Administración Nacional de Aviación Civil - Anac), and the National Cancer Institute face potential layoffs, property sales, or deregulation. A Deregulation Ministry report targets 111 state agencies to eliminate overlapping structures.

If these cuts are not enacted before July 8, they might have to wait until after the Oct. 26 mid-term elections to see if Milei's La Libertad Avanza still has the political muscle to push through with its ideology, Deregulation Minister Federico Sturzenegger explained.

The federal government is also evaluating the total, partial, or concessional privatization of eight state-owned companies, including Enarsa, Nucleoeléctrica, and AySA, to bolster Central Bank reserves.

Diego Chaher oversees this process under Minister of Economy Luis Toto Caputo, who emphasized asset sales as a strategy to generate billions without foreign exchange purchases. “There will be asset sales for billions of dollars,” Caputo said last week during an interview.

Given the impending deadline, the Health, Human Capital, and Economy Ministries were reportedly speeding up the projects under each agency's consideration.