Challenges to Fiscal Adjustment in Latin America : The Cases of Argentina Brazil Chile and Mexico Despite considerable progress made by Latin Americas biggest economies in putting their finances in order numerous challenges remain.&nbsp; Public spending needs to incorporate more flexibility ageing populations and social demands threaten future pressures on expenditure and social and infrastructure spending need to be more cost effective.&nbsp; At the same time tax bases need to broaden to reduce reliance on distortionary taxes on financial transactions and enterprise turnover and overall tax administration must be improved.&nbsp; Finally and foremost the fiscal authorities need to k