After 15 hours of debate, the Lower House passed this morning the 2010 Budget Draft with 136 votes in favour, 88 against and six abstentions. In the same session, deputies approved the extensions of taxes described as "vital" for the Kirchner administration, as well as a series of exemptions to the Fiscal Responsibility Law.

The Budget draft approved this morning and submitted to the Upper House expects spending to reach 273 billion pesos in 2010. Sixty percent of which would be earmarked for social services.

The official estimations forecast exports to reach 65.17 billion dollars in 2010, showing a real growth of 8.4 percent, while imports would climb to 50.99 billion, 7.4 percent higher than in 2009.

In yesterday's session, deputies also approved a 10-year extension of the taxes of Personal Assets, Income, Minimum Expected Profits, a two-year-extension of taxes of Loans and Banking Debits, and a one-year extension on Cigarette taxes.

According to pro-government lawmakers, these taxes would allow the government to collect 88.9 billion pesos, about 25 percent of the tax collection. "Failing to approve these extensions would mean failing to debate wealth redistribution and poverty," said the head of the Budget and Treasury Committee in the Lower House, Gustavo Marconato.

"These taxes not only fund the national administration, but also social security and are an important element of the funds of the revenue sharing. An extension to those funds is not a minor element," the lawmaker added.

The amendments to the Fiscal Responsibility law would allow provinces to issue a volume of debt above the previous cap of 15 percent of the income, in a move to improve the financial situation of the provinces, but raises concerns over the solvency of the provincial coffers.

The 2010 budget draft would be debated after the tax extension, but the debate could be adjourned. The draft made by the Economy Ministry estimates a GDP growth of 2.5 percent in 2010 from a 0.5 percent this year, and a rise in consumer prices at 6.1 percent. Both GDP and inflation are below private estimations.

The bill expects primary surplus to reach 2.3 percent of gross domestic product, or 28.6 billion pesos, while the estimate for this year's surplus was cut to 1.36 percent of GDP, down from 3.27 percent.

Private reports say the primary budget surplus would fall next year to 0.7 percent of gross domestic product, down from approximately 1.3 percent this year, increasing the likelihood of a budget shortfall.

Defending the budget bill, Economy Minister Amadou Boudou told lawmakers at Congress that "Argentina has received aftershocks from the crisis... It hurt trade, with the tremendous drop in demand for the country's goods, their prices and also in investment."

However, he expressed his confidence that the global recovery would boost prices of commodities, generating a positive impact on Argentine exports.