Argentina’s Strong Fiscal Surplus Reinforces Economic Discipline Under Milei

Argentina reports a primary fiscal surplus and public sector surplus for February, supporting President Javier Milei’s ‘zero deficit’ aim. The primary surplus was 1.177 trillion pesos (0.5% of GDP), marking the 13th surplus in 14 months. Despite fiscal achievements, significant cuts to public spending have led to protests.

Argentina has reported a primary fiscal surplus and a public sector financial surplus for February, affirming President Javier Milei’s commitment to achieving a ‘zero deficit’ amidst ongoing economic challenges. According to the economy ministry, the primary fiscal surplus reached 1.177 trillion Argentine pesos (approximately $1.10 billion), constituting about 0.5% of the country’s gross domestic product (GDP). This achievement marks the 13th surplus in 14 months under Milei’s administration.

The public sector registered a financial surplus of 310.73 billion pesos for the same month, which is roughly equivalent to 0.1% of GDP. Economy Minister Luis Caputo underscored this accomplishment as a reinforcement of the government’s dedication to fiscal discipline, essential for fostering a robust economy that supports job creation and sustainable income growth.

Last year, under Milei’s leadership, Argentina recorded its first annual budget surplus in 14 years. However, the government’s significant cuts to public expenditure—particularly affecting education and pensions—have led to widespread protests. These measures are part of an overarching strategy to control soaring inflation and restore fiscal integrity.

In conclusion, Argentina’s achievement of a fiscal surplus reflects the government’s stringent economic policies aimed at controlling inflation and maintaining fiscal order. Under President Javier Milei, consistent surpluses have become a defining feature of the administration, although controversial spending cuts have sparked public dissent. Continued focus on fiscal discipline is crucial for economic stability and growth.

Original Source: www.tradingview.com