The President Javier Milei He spoke to businessmen at the Council of the Americas, seeking to provide them with good information about the economic direction and recovery. In this context, he confirmed the exclusive advance of Scope: The 2025 Budget will be “zero deficit” and have a new format “that is not vulnerable to macro changes.”
In his speech, in which he provided definitions to the red circle on the main economic variables, Milei explained that with the new way of preparing the Budget the intention is that If for some reason revenues are underestimated and in practice state resources are greater than expected, these surpluses will be used to lower taxes and not to increase spending, as has been done historically.
In the opposite scenario, that is, if the income estimate is lower than the actual one, the decision It will be cutting items because, of course, keep the financial deficit at zero (including payment of interest on debt) It is a central objectivethey point out in official media.
In addition, Milei stated that with this modality the Argentina will not take on new debt. Although he clarified that he will roleplay the existing one.
Javier Milei’s economic definitions for businessmen
President Javier Milei returned to ruled out the possibility of a devaluation and highlighted the sharp drop in inflation. “We are not willing to devalue the currency to ruin the Argentines,” he said in his speech.
Hours before the July inflation data was released, he indicated that the latest wholesale data dropped to 2.7% “which gives 35% year-on-year” and said that “it is a tremendous achievement to go from 17,000% to 35%.”
“But I have more to acknowledge the minister (Luis) Caputo, 2.7% and I have a crawling peg system, we are enabling that 2% inflation floor and if we remove that 2% floor, inflation would be traveling to 0.7% monthly. That is, 8% year-on-year. Thank you Toto,” he said.
The President spoke at the close of the meeting in the presence of the Minister of Economy, Luis Caputo, and the Minister of Deregulation, Federico Sturzenegger.
Milei said: “The government that left expected us to solve the problem as liberated liberals and not as libertarian liberals so that the problems of combined stocks and flows would lead to tremendous hyperinflation.”
According to him, the idea of Peronism was: “In January we could return with all the adjustments made by the market and in the worst way with the consequences if we had not carried out the program that we did.”
“It was clearly planned so that we would blow up in a month. Add to that the overdue tariffs and other important prices of the economy that were undermined, and the BCRA had negative net reserves of 11 billion dollars, we were on the way to the worst crisis in our history,” he argued.
Source: Ambito
