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LatinNews Daily - 16 September 2020

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In brief: Argentina’s gov’t submits 2021 budget proposal

*The Argentine government led by President Alberto Fernández has submitted its draft 2021 budget to congress – its first since coming to office in December 2019. The full details of the proposal have yet to be unveiled but the proposal is based on delivering a primary deficit of 4.5% of GDP as well as 5.5% GDP growth and annual inflation of 29% in 2021. In a statement published by the economy ministry, the government said it hopes to achieve these targets primarily through a revival in production and a “robust recovery” in tax revenues. The proposal lays out plans to boost investment by 18.1% in 2021. This includes significant infrastructure spending of Ar$835bn (US$11bn). Although Economy Minister Martín Guzmán called the draft budget “realistic,” some local analysts have described it as ambitious, questioning the government’s ability to finance such spending and to raise tax income when the coronavirus (Covid-19) pandemic is showing few signs of abating (the government expects Argentina’s GDP to contract 13.6% this year and inflation to come in at 32%).