By World Bank
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Extra info for Argentina: from insolvency to growth
Principal Education Issues 83 B. The Level and Structure of Expenditure in Education 84 C. University Education 89 D. Policy Options for Reform 90 Chapter 7. Military Expenditure 93 A. Introduction 93 B. Military Expenditures in 1984-1990 94 C. Personnel, Wages, Allowances, and Pensions 96 D. Overview of Military Expenditure: 1991-1992 98 E. Personnel Retrenchment Policy Options 99 F. Facilities, Assets and Operations 102 G. Conclusions 103 Chapter 8. The Presidency 107 A. Presidency Expenditures 107 B.
Sustainability of the Fiscal Balance 199 C. Savings from Recommended Reforms 203 D. 1 General Description of the Projections 259 Statistical Appendix 273 Page xi EXECUTIVE SUMMARY A Overview Three Years of Progress 1. The Menem Administration assumed office in July 1989 after a decade of crisis in public finances that had culminated in hyperinflation. The new team inherited weak public institutions accustomed to deficit spending and reliance on the inflation tax. Claims on the state's resources were far greater than its capacity to mobilize resourcesmeaning the Argentine state was insolvent.
Page xv outstanding issues are neutrality with respect to use of capital and labor and the progressivity of the system. 15. The Government is poised to address these issues in the context of its social security and pension funds reforms. One proposal would be to reduce the wage taxes by making some portion of the employers' contribution deductible against the VAT, and thus increase social security funding from the VAT and income taxes. This would generate an important incentive for employers to declare social security contributions and help reduce evasion.
Argentina: from insolvency to growth by World Bank