950805

Argentina begins

budget forecasts

with IMF

BUENOS AIRES: Argentina on Friday began evaluating its fiscal forecasts for the second half of 1995 with officials of the International Monetary Fund, a senior government official said.

"We are having a constructive dialogue with the Fund. We have been up until now looking at the first half accounts and now we are evaluating the forecasts for the rest of the year," Economic Planning Secretary Juan Llach told reporters.

Llach denied media reports that the IMF had requested an increase in taxes, or that the government was considering an amnesty for tax evaders.

"No way," Llach said when asked about talk of a possible tax hike. "(Nor did we) talk about an amnesty," he added.

While denying tax rises, the government has said it wants to reduce employers' contributions as soon as possible, seen as a key move to fight endemic 18.6 percent unemployment.

Cutting contributions would bring a short-term drop in revenues, making it more difficult to reach targets agreed with the IMF in March, when Argentina committed itself to delivering a $2 billion budget surplus in 1995.

Llach said the government will maintain its zeal in the fight against tax evasion, which private analysts say cost it $8 billion a year.-Reuter