Argentina reached a surplus of $620 million

A financial surplus of $620 million was recorded in January, resulting from a primary surplus and interest payments on public debt

Argentina recorded a financial surplus of $620 million last January, the result of a primary surplus and the payment of interest on the public debt, according to official sources. This positive result is the first since August 2012 and the first in a month of January since 2011, according to data provided by the Ministry of Economy.

In the first month of the year, Argentina recorded a primary surplus of 2,408 million dollars, where total revenues reached 7,361 million dollars, an increase of 256.7 % year-on-year.

In terms of tax collection, there was a growth of 256.9 % due to the performance of foreign trade and domestic economic activity of Argentina.

These results are related to the sharp cuts in public spending, which President Javier Milei has been carrying out since he assumed on December 10, a plan of fiscal ‘shock’ such as the elimination by decree of this day of millionaire trust funds.

Capital expenditure (energy, transport, education, housing, drinking water and sewerage, among others) fell by 50.3 % year-on-year in net terms, although inflation is taken into account, from 254 % year-on-year in January, the fall in real terms is greater.

In the last month of the year, the primary deficit of Argentina was 2.384 million dollars, where the financial deficit was located at 6.383 million dollars, in the whole of 2023 the country had a decrease of 2.9 % of GDP.

In this sense, the Argentine president celebrated the January fiscal result on social networks, reaffirming the slogan: “Zero deficit is not negotiable”, which the Minister of Economy, Luis Caputo, had included in his X account, after announcing the country’s first financial surplus in 12 years.

K. Tovar

Source: Portafolio

(Reference image source: @GustavoIPadilla, X)

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