The proposed spending cap on Argentina’s provincial governments is a positive step and could in theory narrow the overall public sector budget deficit by almost 1% of GDP by 2019. However, it’s not clear how the spending cap will be enforced. More fundamentally, the cap by itself won’t constrain spending – it will need to be complemented by other austerity measures.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services