Caputo announces return of public works and defends economic plan amid criticisms

Argentine Economy Minister, Luis Caputo, announced that the government plans to bring back funding for public works, which had largely halted in December 2023 when President Javier Milei took office. Speaking at a conference hosted by the Atlantic Council, a Washington-based think tank, on Tuesday, Caputo confirmed that works on 9,000 km of national highways will be put out to tender in June and that construction will take place on the sections that carry 80% of the country’s traffic. “We are working on awarding concessions for an additional 12,000 km of national highways and also transferring provincial highways, many of which are already funded,” he said, adding that road infrastructure in Argentina is “set to undergo a dramatic transformation over the next two years.” His announcement came as criticism was growing over the poor state of many Argentine highways, considered to be the cause of many traffic accidents. Caputo also confirmed that the government will move forward with the concession of Belgrano Cargas, the freight network of the General Belgrano railway with 10,000 km of rail lines across the country, and the bidding process for the Paraná-Paraguay waterway.  “For us, that means lowering the cost of doing business in Argentina. We are tackling the cost of doing business in Argentina by cutting taxes, reducing regulations, and improving logistics,” Caputo said. A defense of the economic plan Talking to business people gathered at the Atlantic Council, Caputo also defended the results of his economic plan, amid criticisms over a rise in unemployment and family debt, and a fall in mass consumption. The minister dismissed the criticisms, calling them “a resistance by journalism which aims to paint a picture that bears little resemblance to reality” and highlighting figures such as “historic records” of the Gross Domestic Product (GDP) growth, private consumption and exports. “We’ve also set a record for exports in the knowledge economy, reaching $10 billion, and poverty levels were the lowest in the past seven years,” he added, claiming the labor reform — approved in February, but temporarily suspended by a federal court — will lead to “greater formalization, which will result in higher tax revenues and allow us to continue lowering taxes.” Caputo pointed to “more than 35 projects” already submitted to the RIGI, the special tax, customs, legal, and foreign-exchange benefits for investments exceeding US$200 million, put in place by the Milei administration. According to Caputo, a third of them have already been approved, highlighting the levels of foreign direct investment. “It amounts to $27 billion, which will create 36,000 direct jobs. The greatest risk is missing out on the opportunity to invest in Argentina, which is the country that will perform best over the next 30 years,” he said.