Argentina’s government, under newly-elected President Javier Milei, who assumed office in December, achieved its first monthly budget surplus in nearly 12 years in January. The president has made it clear that achieving a balanced budget is a top priority for his administration.
The surplus is $US589 million at the official exchange rate, the Argentinian government revealed last week.
It is “the first (monthly) financial surplus since August 2012, and the first surplus for a January since 2011,” the Economy Ministry said, according to Telam news agency.
This surplus, inclusive of interest payments on public debt, represents a pivotal turnaround in Argentina’s financial landscape. According to reports from the official Telam news agency, January’s fiscal surplus is the first the country has seen since August 2012 and the first January surplus since 2011. Milei’s government is steadfast in its commitment to restoring financial stability, particularly as it negotiates with the International Monetary Fund (IMF) regarding Argentina’s substantial USD44 billion loan. Milei has made it clear that achieving a balanced budget is a top priority for his administration.
Economy Minister Luis Caputo emphasized the non-negotiable nature of achieving a zero deficit, underscoring the government’s determination to rein in spending and address public debt concerns.
Milei, an economist by profession, has advocated for aggressive measures such as significant spending cuts and reduction of public debt, with the ultimate goal of transitioning to a dollarized economy.