Economy Minister Luis “Toto” Caputo announced over the weekend that Argentina had recorded a budget surplus of about $620 million in January, the South American country’s first strong financial result in 12 years. Ta.
of surplus, according to For the Argentine government, it results in a primary budget surplus and interest payments on public debt. The company’s financial results for January were in the black for the first time since August 2012, and the first time since 2011 that the company had a surplus in January.
“This is the first time since August 2012 that the central government’s expenditures are lower than its collections and the public account is not in the red due to debt interest payments,” a statement from the Argentine president’s office said.
— Officina del Presidente (@OPRArgentina) February 17, 2024
“The budget surplus will benefit Argentina as a whole. It will allow us to stop cutting emissions, start curbing inflation, and set the path for tax cuts,” the statement continued. “This is the program that President Javier Millay promised the Argentine people, and it is a program that is being carried out despite constant attacks by those who believe their privileges are at risk.”
Argentina’s President Javier Millay celebrated the announcement on social media. “Toto, let’s go! Zero deficit is non-negotiable. Long live freedom, you bastards!” his message read.
Waaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa
El Deficit Cerro No Se Negosia.
Viva La Libertad Calajo https://t.co/SfkErs95KS— Javier Milei (@JMilei) February 16, 2024
“Thank you, Mr. President, for so much belief in ending populist lies,” Caputo said. I have written In response to the.
Since taking office, Millay has spearheaded a drastic “shock therapy” program to avert a complete collapse of Argentina’s fragile economy after nearly two decades of socialist policies and out-of-control government spending. The last socialist president, Alberto Fernández, brought Argentina’s finances to the brink of complete ruin due to rising inflation. hovering At the time of Milley’s inauguration on December 10th, it was 160%.
The measures began with Sign The enactment of the Decree of Emergency Necessity (DNU), a special type of presidential decree in Argentine law, in which approximately 350 socialist policies were amended or deleted as part of Mr. Millay’s first step in the informalization of Argentina’s economy. It was done.
Most of Millais’s reforms have not yet been implemented, but they are part of a larger package of reforms. omnibus The bill was initially approved by Argentina’s lower house of parliament in February. was denied An article-by-article vote a few days later forced the project back to committee from the full Congress.
The “zero deficit” target, which Millais and Caputo have insisted is a “non-negotiable” issue, is one of Argentina’s key conditions. examination They agreed to a debt of about $44 billion to the International Monetary Fund (IMF) and a primary surplus in 2024 equal to 2% of gross domestic product (GDP).
Millay Said local Radio Rivadavia Argentina will experience the “toughest” period of economic downturn in March and April, but will then experience a “recovery,” it was announced a week ago.
“You’re going to have a kind of ‘V’, or initial stretch, and the most difficult moment is in March and April, when you hit the bottom, start rebounding there, and then pull yourself up again. It’s time.” [currency exchange control restrictions]the economy moves forward,” Millais said.
