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Argentina Boosts Welfare by Nearly 40 percent Amid Economic Turmoil

By: PanAm Post Staff - May 15, 2014, 9:50 am

EspañolOn Wednesday, the government of Argentina announced a 37.5 percent increase in subsidies received by the country’s poorest families, a measure that is likely to lead to a strong increase in public spending at a time when high inflation rates are already affecting consumers.

The boost will benefit about 3.5 million children, which the flagship program targets, and will up the state’s expenditure for these programs to about AR$55 billion (US$5.1 million) from AR$40 billion annually.

“We believe in the economic theory that says that to improve the quality of life of the poor and workers is to improve the quality of a nation, its industries, its businesses, its merchants, its skilled workers,” said Argentina’s President Cristina Fernández, announcing the increase.

After nearly a decade of strong economic growth, Argentina is currently experiencing a period of stagnation as a result of high inflation, which, according to analysts, could surpass 30 percent per year.

Source: Reuters.