The Government announced that it will register the first deficit of the Milei era in June due to the payment of bonuses

The Government announced that it will register the first deficit of the Milei era in June due to the payment of bonuses

Since his arrival to the Executive Branch, the adjustment applied to the bulk of the budget items of the national administration decanted into accumulated favorable result as of April of about $1.5 billion. The main cut was carried out in pension expenses, that is, retirements, added to transfers to the provinces and the freezing of payments to energy companies.

The surplus achieved by the Government earned the Minister of Economy, Luis Caputo, receive the nickname “gypsum pig” on the part of the libertarian, given that, as he said, “to get a handle out of it you have to break everything.”

Javier Milei.jpeg

The Government admits that June will close with a deficit: the reasons

But in the national administration they recognize that ahead they will have to face the first red in public accounts. the same Milei He announced it this Wednesday during the presentation at the Latam Economic Forum which took place at the Parque Norte Complex.

“You already know the May numbers are going to be very good,” he first said to those attending the event. However, she acknowledged that June will be “deficit” mainly “due to the issue of bonus payments.”

In any case, he assured that when the semester ends, the accumulated of the six months together “There is going to be a surplus because everything we have put together so far more than exceeds what we are going to have as a deficit in June.”

The Executive will increase the budget items to cover expenses

Meanwhile, the Government is preparing to implement a new modification of the current budget with the reallocation of funds to face the coming months, where greater expenditures for salaries of employees are expected. public employees, bonuses, food items, the reversal of northern gas pipeline and the purchase of planes to Denmark.

According to the newspaper Clarín, the Executive will authorize an increase in the calculation of resources by $123.27 billion and an increase in expenses by $274.69 billion. The payment of salaries in June and deposit of the complementary annual salary in July will consume a good portion of the estimated expenses.

It is worth remembering that a few days after taking office, the president Javier Milei generated uncertainty among public employees by questioning the payment of the bonus, despite the fact that at that time the outgoing administration of Alberto Fernandez had arranged the funds to meet the payments.

If we raise 100, we are not going to spend 120. We are not going to spend more than 100. They will cut what they have to cut,” he said regarding the expenses that the National Public Sector had to face as well as the provinces. And he pointed out against the former president: “Alberto is going to separate himself from that, that is something that I have to face but we have to achieve fiscal balance. In the first year we want to achieve fiscal balance and that is not negotiable.”

Source: Ambito

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