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Argentina Congress Continues Controversial Legislative Push

BUENOS AIRES -(Dow Jones)- Argentina's Congress this week continued with its massive legislative push, as the administration of President Cristina Fernandez seeks to get as much of its controversial legislation approved as possible before Dec. 10.

That's when a new legislature elected in June 28 midterms is scheduled to take over and the ruling Front for Victory will lose its working majority in both houses, although it will remain the largest single party in Congress.

Here are some of the latest highlights:

APPROVED:

*2010 Budget: The Senate on Wednesday voted 42 in favor and 25 against the government's budget for 2010, which envisages gross domestic product increasing by 2.5% and inflation of 6.1%. The law also extends the cabinet chief's powers to redistribute money without congressional oversight and maintains the current system for sharing tax revenue between the central government and the provinces. It has already been approved by the lower house.

*Tax Extension: The Senate on Wednesday also voted 41 in favor and 26 against a law extending five key taxes expected to bring in 23.5 billion Argentinian pesos next year. They include a levy on some bank transactions. It has already been approved by the lower house.

PARTIAL APPROVAL:

*Economic Emergency: The lower house on Wednesday voted in favor of a two-year extension to the Economic Emergency Law. Part of the broad set of powers transferred to the executive from Congress during the 2001-02 economic crisis, this allows the government to freeze utility prices. Will now be sent to the Senate.

*Independent Workers' Tax Bill: The lower house on Wednesday voted to update the tax code for so-called independent workers and try to clamp down on widespread evasion. The changes would lower the overall tax burden for these self-employed workers, giving them greater incentives to declare their income and pay taxes. It will now be sent to the Senate.

*Senate Budget Commission OKs Bolt Law: The government has asked Congress to suspend temporarily the so-called Bolt Law to allow it to reopen the mammoth 2005 debt restructuring. The bill will now be put to a vote in the Senate plenary bill; it has already been approved by the lower house.

PENDING:

*Lower House Debates Political Reform Bill: The administration wants to introduce sweeping changes to the political system in a controversial piece of legislation. Many believe the bill is designed to improve the electoral chances of former President Nestor Kirchner, husband of the incumbent, in the runup to the 2011 presidential election.

-By Dow Jones Newswires; 54-11-4103-6740; argentina@dowjones.com

  (END) Dow Jones Newswires
  11-12-091005ET
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