Argentina Reports Another Fiscal Surplus, Upholds Commitment to Fiscal Order

Argentina has achieved a primary fiscal surplus and public sector surplus for February, supporting President Javier Milei’s zero deficit initiative. The primary surplus equates to 0.5% of GDP, marking the 13th consecutive monthly surplus. Economy Minister Luis Caputo highlights the commitment to fiscal order essential for economic recovery despite significant public spending cuts provoking protests.

Argentina has reported another primary fiscal surplus and a public sector financial surplus as of February, as stated by the government on Monday. This achievement supports President Javier Milei’s commitment to a “zero deficit” policy aimed at addressing the ongoing economic crisis and achieving a balanced budget. The reported primary fiscal surplus reached 1.177 trillion Argentine pesos, approximately 0.5% of the country’s gross domestic product (GDP), according to the economy ministry.

This fiscal surplus marks the 13th consecutive month of surplus during President Milei’s 14 months in office. Additionally, the public sector registered a financial surplus of 310.73 billion pesos, translating to around 0.1% of GDP. Economy Minister Luis Caputo emphasized that this outcome “further strengthens the commitment of our President Javier Milei and his entire government team to fiscal order,” viewing it as essential for a resilient economy capable of generating quality employment and sustaining wage increases over time.

Last year, Argentina achieved its first annual budget surplus in 14 years. In an effort to control escalating inflation, Milei’s administration has implemented significant reductions in public spending, including cuts to education and pension expenditures, leading to widespread protests across the nation.

In summary, Argentina’s recent fiscal results demonstrate the government’s ongoing efforts to maintain fiscal discipline under President Javier Milei. The primary fiscal surplus and public sector surplus reflect strategic budgetary measures aimed at stabilizing the economy amidst fiscal challenges. However, considerable public discontent arises from spending cuts in crucial social sectors, indicating the complexities involved in achieving financial sustainability.

Original Source: www.tradingview.com