- Economists To Tinubu: Emulate Argentina, Slash Your Cabinet by 50%, Drop Presidential Jets, Abolish N15bn Mansion for VP…
- Senators Must Cut Bogus Salaries, Lifestyles by 50% …
By Abiola Olawale
In a notable development, the monthly inflation rate in Argentina decreased by half to 4.2% in May 2024, as per data released by the INDEC national statistics bureau.
The major boost coincides with President Javier Milei’s efforts to address the most severe economic crisis facing the country in several decades.
Milei since taking over office in December had slashed public spending by half, cut the Cabinet size by half, done away with tens of thousands of state jobs, suspended new public works contracts and ripped away fuel and transport subsidies as well as abandoned presidential jet, a familiar prestige travel plane for presidents.
Similarly, last week, the Senate passed a bill sent by Milei to trim the fiscal deficit, incentivize foreign investment and privatize some state-owned companies.
The policies have been showing good results as the country’s monthly inflation rate in May plunged to 4.2%, down from a monthly rate of 8.8% in April and well below a peak of 25% last December when Milei became president.
According to the government statistics agency, food and non-alcoholic beverages, which have consistently risen at above-average rates, rose 4.8 per cent in May.
The smallest increases were seen in healthcare (0.7 per cent) and housing, water, electricity and fuels (2.5 per cent).
Also, monthly inflation in Argentina dropped below five per cent last month for the first time in more than two years.
This positive development in Argentina has spurred many economists in Nigeria to call on President Bola Tinubu to cut the size of his cabinet by half, merge many ministries, sell off the N15bn mansion built for Vice president Kashim Shettima, cut down government expenditure by 50%, ban all foreign travels except when necessary and reduce salaries of public officers and those of Senators.
Said an economist:” If Argentina can do this feat in just few months of the president coming into office, what stops Tinubu from doing same? We are sitting on an economic time bomb given the rising inflation.”
He added: “ The Argentina president inherited a dead economy which has been on for about two years before he came into office. But with pragmatism, cutting down useless spendings, he has reduced inflation and the country is on its path to recovery…Don’t say, we inherited a dead economy. That is no excuse. Let’s Learn from Argentina please.”
