For the first time in 12 years, Argentina registered a financial surplus of 518,408 million Argentine pesos (620 million dollars) last January, the product of a primary surplus and the payment of interest on the public debt, official sources reported on Friday.
This is the country’s first positive financial result since August 2012 and in January since 2011, according to data from the Ministry of Economy.
In the first month of the year, Argentina registered a primary surplus of 2.01 trillion Argentine pesos (2,408 million dollars), where total income reached 6.1 trillion (7,361 million dollars), an increase of 256.7% . year-on-year.
Regarding tax collection, there was a growth of 256.9% due to the performance of foreign trade and domestic economic activity in Argentina.
El «shock» fiscal
These results are related to the strong cuts in public spending, which President Javier Milei has been carrying out since he considered on December 10, a fiscal ‘shock’ plan such as the elimination by decree of this day of millionaire trust funds.
Capital expenditures (energy, transportation, education, housing, drinking water and sewage, among others) fell by 50.3% year-on-year in net terms, although if the evolution of inflation is taken into account, from 254% year-on-year in January , the fall in real terms is greater.
Subsidies, which have been a point of clash between different leaders in recent weeks, grew by $54,877 million. However, when analyzed in detail, the disparity in the evolution of each can be seen: those destined for transportation increased by $92,937 million, while energy products had a nominal year-on-year drop of $25,649 million.
In this sense, the Argentine president celebrated the January fiscal result on social networks, reaffirming the slogan: “The zero deficit is not negotiated,” which the Minister of Economy, Luis Caputo, had included in his X account, after announcing the country’s first financial surplus in 12 years.
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