Argentine lawmakers give final approval to President Mauricio Macri’s budget, tax plan

Argentina President Mauricio Marci.

Argentina’s Senate on Wednesday gave final approval to the government’s tax reform and 2018 budget plan, part of President Mauricio Macri’s push to cut business costs and attract investment to Latin America’s No 3 economy.

Macri was elected in late 2015 with a mandate to free the markets by ditching the heavy controls put on the economy by the previous government. The 2018 budget bill foresees economic growth of 3.5 per cent and average inflation of 15.7 per cent.

Last week Congress approved Macri’s pension reform plan, part of his campaign to cut Argentina’s fiscal deficit to 3.2 per cent of gross domestic product by the end of 2018 from 4.2 per cent currently.

The pension reform debate prompted violent protests outside of Congress and a 24-hour general strike by labor unions that accuse Macri of cutting benefits to already-struggling pensioners while lowering corporate income taxes.