The primary fiscal surplus grew 41% year -on -year in July, in real terms, so in the first seven months of 2025 it represented about 1.1% of the internal gross product (GDP). However, the treasure had its first financial deficit of the yeardue to the seasonality of debt interest payments.
The Ministry of Economy reported Monday that the tax balance gave a positive primary result of $ 1,749,386 million, But a financial “red” $ 168,515 million. The latter was due to the maturities of the bonars and global (public titles issued during the management of Martín Guzmán in the Treasury Palace) that, net of intra public sectors, meant about $ 1,917,901 million.
“Given the maturities of the semiannual coupons of interest of the bonary and global titlesboth in January and July it is registered, relative to the rest of the months of the year, a high interesting disagreement“The Minister explained Luis Caputo In its X account. In concrete terms, the figure was 247% higher than the monthly average registered between February and June.
Energy subsidies, social programs and salaries explained the decline in spending
As for the primary surplus, the annual increase was explained both by the Fall in public spending (-1.3%) as for the Raise in collection (+2.8%).
According to a publication of the Argentine Institute of Fiscal Analysis (IARAF), within the most relevant components in the state expenses structure, real contractions were verified in Energy subsidies (-28.3%), social programs (-11.7%), salaries (-10%) and benefits of the National Institute of Social Services for Retirees and Pensioners (-7.4%). Strong falls stood out in family assignments (including AUH) and direct real investment.
At the other extreme, the disruption in retirement and pensions climbed 16.5% (from a very low comparison base) and also highlighted a 99.6% recomposition in current transfers to provinces.
The government maintained the fiscal surplus, but there was a reduction versus 2024
So far this year, total income decreased by 1% real, versus the same 2024 period, while primary expenditure grew 3.6%. Consequently, although the balance was positive for the coffers of the national state, it was a 25% lower than last year.
The Iaraf reflected that retirements and pensions explained 61% of the highest expense in the accumulated of 2025, while the podium in participation was completed by the current transfers to provinces and the universal allocation with 10% each. On the other hand, the cuts in energy subsidies, social programs and salaries were the ones that most traced down.
In addition, Considering the interests of the debt, the surplus was reduced by 10% per yearat constant prices, from $ 3,499,128 million to $ 3,147,000 million. In terms of GDP, the total surplus continued to represent 0.34%, as well as between January and July 2024, according to the IARAF calculations.
Even so, Caputo stressed that “the consolidation of fiscal balance” allowed the government to reduce the tax burdenin line with the promise to its electorate, through for example the elimination of the country tax, the decline of withholdings (in this partial, and temporary case for some products), the reduction of customs perceptions in VAT and profits, and the decrease in taxes linked to foreign trade.
Source: Ambito
