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Argentina has reformed its public finance system and reversed years of economic decline and deficit spending. This study recommends policy options to speed the already impressive progress.
These options would expand the ambitious reform program already under way. This study shows how to sustain balanced public finances over the medium term. It describes ways to sustain price stability and economic growth while providing a cushion against unexpected downturns. Also examined are ways to improve social services while reducing the size of government.
Researchers discuss key reforms that could boost the fiscal surplus by as much as 1.4 percent of gross domestic product. They look at ways to build tax revenues, reduce provincial finances, and make social security more equitable. They review methods to cut defense spending and revive a moribund education system.
Additional policy options offered are reforms for housing and welfare programs and pension fund investments. The study suggests ways to improve the legal framework for a stronger central bank. Also reviewed are ways to eliminate unnecessary administrative agencies and to privatize public enterprises.
The government's new health insurance program is examined. This program offers universal coverage. It lets contributors choose providers and includes subsidies for those who can't pay. It also requires a minimum package of health care at a set price.
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