Gov't lifts subsidies on public service sectors

Economy Minister Amado Boudou and Planning Minister Julio de Vido announced today in a press briefing, a full lift on subsidies; a decision which will reach various public sectors, including electricity gas and water companies. The changes imply annual fiscal savings of $600 million pesos.

Boudou mentioned that there will be a “100% lift on subsidies” today, which is to reach sectors such as: banks, financial firms, insurance companies, casinos, international airports and mobile phone companies within national jurisdiction. The changes will also reach the mining and petrol sectors.

De Vido stated that the measures to be taken were “a first step” toward generating more competitivity in the economy.

The government ministers made the announcement while also declaring the creation of a special commission to analyse subsidy distribution, to be able to eliminate or reduce subsidies to different sectors.

Boudou defended the decision to create the commission and stated that the policies that have been used since 2003 “have had a positive impact on the way the economy functions”.