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Tuesday, May 3, 2011

The return of the subsidies to gas tariffs

(Argentina Twitter)-National Government decided bonus of 100% and 70% for natural gas consumption by networks of the next winter season, similar to those applied in the winter of 2010.
He did it through Resolution 1707/11 of the National Gas Regulatory Body (ENARGAS) published today (3 / 5) in the Official Gazette, which established a bonus equal to 100% for the "Cargo"-aimed at imports gas-to apply to residential users during June and July intake next.


You can give a bonus equal to 70%, of such office-residential users for consumption for August and September.


The Government also decided to exempt from payment of "cargo" for consumption from May to September to residential users in the provinces where lower temperatures are recorded.


The provinces benefited in this case are those of Mendoza, San Juan, San Luis, Neuquén, Black River, Chubut, Santa Cruz, Tierra del Fuego, La Pampa and Buenos Aires.


In 2008, the Trust Fund was established to meet the natural gas imports necessary to supplement the natural gas injection and ensure domestic supply.


This fund consists of the "charge" rate to be paid by users of regulated services of transport and distribution, gas consumers receiving fluid directly from producers, and companies to try him.


The gift from the state is not justified: the house is located in the most expensive neighborhood in Buenos Aires, and for details the "beneficiaries" are not poor or destitute, or retired. Are, say, upper middle class. Neither seems to have run, the Minister of area emphatically declares that things are going well and that energy rates not increase. Lighter would need to water: the gift (unfair) looks set to continue.


That same day in January, the Argentina Association of Budgeting and Financial Management Service (ASAP) publishes interesting facts: Throughout 2010, the National Administration expenditure goes to subsidies amounted to $ 48,032,000, representing a 47% increase amount spent in 2009 and the increase of subsidies was led by the energy sector, which in 2010 received about $ 26,000 million, 63% more than in 2009.


A non-exhaustive list of these problems are: 1) Argentina has a chronic housing shortage for over 40 years is estimated at 2,800,000 homes, affecting more than 25% of the population, 2) requires not less of 4000 km of motorways and highways to transport in an efficient and safe agricultural production volume now reaches to 100 million tons and is designed to expand in the coming years, and 3) the electrification of suburban railways has not grown virtually nothing from the British branch opened in 1924, Moreno and Tigre, and this in a conurbation with a population that is growing and where transportation is highly inefficient, 4) the underground only half make it to the geographical Buenos Aires, when this had been achieved in 1913, and this list can continue ...


In this context, the challenge of politics and democracy is still to effectively address these and other problems. They must have a prioritization of goals and then an intelligent allocation of scarce resources, there are no shortcuts or magic bullets.


Not worth the recipe using the reserve of the Central Bank, inflation or output, or reckless borrowing.


You must use the taxes we pay all avoiding unproductive wasteful spending in our country has many forms. One way, and certainly not the only one, is failing to pay energy bills that do not.

1 comment:

  1. The politics the president is applying are not something everybody agrees with. In this case the subsides are going to help many citizens in the winter, but still there are other problems to solve in terms of subsides. When I travelled to Argentina, I decided t rent apartments in buenos aires because I didn´t want to be juts a tourist in a hotel but experience everyday life. I´m glad I did that because I got to talk to regular people who were able to tell me their thoughts on the current economical and political situation.
    Kim

    ReplyDelete