The elimination of fiscal deficit It is one of the management bastions of the Government of Javier Milei. However, criticisms of the methodology of debt placement and the issuance of securities to carry out short-term operations. One of those who negatively observes the operation of the ruling party is Carlos Rodriguezformer advisor to the President during the electoral campaign.
“Before they issued Passes, Leliqs, Lebacs, etc. and That did not appear in the Treasury’s financial deficit, it only appeared in the BCRA’s quasi-fiscal deficit. Now they have transferred the paid debt from the BCRA to the Treasury and it is called LECAPS,” the economist analyzed in a publication made on his social network account X.
Then, Rodríguez pointed out that “LECAPS are served with more LECAPS, but that does not appear in the Treasury’s financial deficit or in the quasifical. It only increases public debt“.
“As if by magic, the quasi-fiscal deficit disappeared and Milei instantly reduced the State deficit by several points of GDP. That is simply blackmail. The deficit continues. They don’t fool anyone, they just lose credibility.“he concluded.
Another of the economic references that accompanied Javier Milei on his political path is Carlos Maslatonwho shared Rodríguez’s analysis and considered that “The financial rinses of Caputo and Milei, hiding debt and playing with the debt to guarantee the City’s bicycle, is a fraud to the State and the people. His lies declaring non-existent surpluses constitute grounds for poor performance in office. “The rotten thing is going to happen.”
“It’s going to be a scandal when the real fiscal and debt numbers of the Caputo and Milei government jump. No one has ever put the country into debt as much and as quickly as these two associated criminals. And no one falsified the public accounts either, lying to the country and the world, for the benefit of financial corruption and against the exploited people,” the lawyer concluded.
Coincidences in Deputies
Interviewed by Ámbito, the national deputy Itai Hagman shared elements of Carlos Rodríguez’s analysis, within the framework of the debate for the 2025 Budget project. “They do not place part of the debt, which they transferred from the Central Bank. This is to stop putting capital as amortizations or financial applications and interest on debt as expenses, but rather putting everything below the line. I asked that in the commission and the official confirmed it to me: the debt is going to grow regardless of the fiscal result,” he said.
“They are capitalizing the interests, which they are today the Lefi and the Lecapand therefore you will always go into debt to pay the principal plus interest. And then when the new interest expires, you will go into debt to pay the principal plus interest. So that It is a ball that will grow regardless of the fiscal balance and therefore it is debatable whether it is sustainable. The sustainability of a healthy macroeconomy does not have to do exclusively with the issue of fiscal deficit or debt, but with a set of variables that have to be consistent with each other,” the legislator developed.
To conclude, he stated that “the reality is that if you look at Argentine history, The main factor of destabilization of the macroeconomy was precisely the excess of external debt. Argentina’s great economic crises are all preceded by large cycles of external debt: that of ’89, that of 2001, that of 2018. This Government wants to return to that: lower the country risk so that Caputo can do exactly the same thing again what it did in 2016 and 2017, which is to finance supposed macroeconomic stability with external debt.
Source: Ambito
