Argentina reported a primary fiscal surplus of 1.177 trillion pesos in February, marking a continuation of its fiscal discipline under President Javier Milei. This surplus equates to 0.5% of GDP and reinforces Milei’s ‘zero deficit’ commitment despite public protests against spending cuts in education and pensions.
Argentina achieved a primary fiscal surplus and a public sector financial surplus in February, reinforcing President Javier Milei’s commitment to a ‘zero deficit’ strategy aimed at navigating the country’s economic crisis. The primary fiscal surplus amounted to 1.177 trillion Argentine pesos (approximately $1.10 billion), representing 0.5% of the gross domestic product (GDP), as stated by the economy ministry.
This achievement marks the 13th monthly surplus in Milei’s 14 months of leadership. Additionally, the public sector recorded a financial surplus of 310.73 billion pesos, equating to around 0.1% of GDP. Economy Minister Luis Caputo emphasized this outcome as evidence of the government’s dedication to fiscal order, which he described as a key element for fostering a sustainable economy that supports job creation and income growth.
Argentina also reported its first annual budget surplus in 14 years last year. However, Milei’s administration has implemented significant public expenditure cuts, impacting sectors such as education and pensions, which have led to widespread protests against the government’s measures. The exchange rate at the end of February stood at $1 = 1,064 Argentine pesos.
Argentina’s recent fiscal surpluses reflect ongoing efforts to achieve financial stability under President Milei’s government. With a focus on reducing public spending, the administration aims to control inflation and create a stronger economy. Nonetheless, austerity measures continue to provoke public discontent, highlighting the challenges faced during this transition.
Original Source: www.tradingview.com
