Argentina achieved a primary fiscal surplus of 1.177 trillion pesos in February, marking the 13th monthly surplus during President Milei’s term. This surplus aligns with Milei’s ‘zero deficit’ pledge amidst efforts to stabilize the economy and curb inflation. Although the administration’s spending cuts are aimed at economic recovery, they have sparked protests due to reductions in vital public services.
In February, Argentina achieved a primary fiscal surplus and a public sector financial surplus, reinforcing President Javier Milei’s commitment to a ‘zero deficit’ policy amidst an ongoing economic crisis. According to the economy ministry, the primary fiscal surplus amounted to 1.177 trillion Argentine pesos (approximately $1.10 billion), equating to about 0.5% of the gross domestic product (GDP). This achievement marks the 13th monthly surplus during President Milei’s tenure of 14 months.
The public sector reported a financial surplus of 310.73 billion pesos for the same month, translating to roughly 0.1% of GDP. Economy Minister Luis Caputo emphasized that this fiscal result underscores the commitment of President Milei’s administration to uphold fiscal order, a core element of the economic strategy aimed at fostering a sustainable economy with quality job growth and continuous wage recovery.
Last year represented a notable shift for Argentina, as it posted its first annual budget surplus in 14 years. Milei’s administration has implemented extensive cuts in public spending to control runaway inflation. These measures, particularly reductions in education funding and pension payouts, have incited public protests throughout the nation.
Argentina’s recent fiscal surplus indicates a promising trend under President Javier Milei’s administration, whose commitment to maintaining a ‘zero deficit’ policy is evident. The positive fiscal performance exemplifies the government’s resolve to ensure fiscal stability and economic growth, despite facing challenges such as public discontent due to austerity measures. Ultimately, these steps are viewed as essential in enhancing the nation’s economic foundation.
Original Source: www.tradingview.com
