He October financial surplus was $523,398 million and already accumulates 0.5% of the Gross Domestic Product (GDP) in the yearaccording to the Minister of Economy himself Luis Caputo on your official X account. This Friday, the Treasury Secretary will expand the results.
Caputo had already announced that the surplus was “important” and this Friday, prior to the publication of Treasury Secretaryexpanded that the primary surplus (before interest payments) was $746,921 million. While, the net interests were $223,523 millions.
Compared against the financial deficit of $454 billion of the same month of 2023, “is equivalent to $1,330 billion adjusted today for inflation.” “That is to say, the difference in financial results versus October 2023 is $1,853 billion“said the official, who in turn celebrated that So far this year, a financial surplus of 2,965 billion pesos (0.5% of GDP) has accumulated..
“This financial surplus was achieved with a sustainable program“he celebrated Martin Vauthiera member of Luis Caputo’s economic team and director of BICE, and added that the program “includes a strong reduction in State structural expenses and expenditures that do not correspond to the functions of the Nation.”
“At the same time, retirements and social programs without intermediaries grew compared to November 2023,” he concluded.
The Government aims for greater adjustment to maintain the optimism of the markets
October spending was lower than the previous two months: it reached $7.5 billion in October, while in September it was $8 billion and in August $8.5 billionaccording to data from the Congressional Budget Office (CPO). Thus, it is demonstrated that month after month the Government intensifies efforts towards adjustment to maintain the tailwind in the financial markets.
Something similar happened with the primary expenditureit was from $7.2 billion in october, $7.7 billion in September and $7.4 billion in August. Meanwhile, the current expense was from $7.3 billion in october, $7.7 billion in September and $8.2 billion in August.
The fiscal surplus has been the cornerstone of the success that the Government itself claims, with the approval of the markets, which constantly promote improvements in financial variables with a country risk of 780 basis points, the stock market with unmatched profits and the calm financial dollar. Although it is still not clear how it will obtain the dollars to sustain economic stability in the medium and long term.
Despite the fact that Vauthier assured that retirements and social programs “grew compared to November 2023”, according to the accrued data published by the OPC, spending adjustment continued to focus on retirementswhich fell 8.3% real annually; while the salaries of public employees they suffered a greater decrease in the order of 31.1%; the transfers to the provinces 62.9%; and the public work 81.2%. Meanwhile, transfers to universities fell 13.9%.
Source: Ambito
