President Javier Milei presented his 2025 Budget project to Congress today, which observes the zero deficit rule while considering that his government came to “put a stop to public spending.”
“Today we are here to present a national budget that will change the history of our country, so that we can once again be the great Argentina that we once were. Today we have come here to put a stop to the State,” said the president before deputies and senators.
The head of state said that “this budget protects fiscal balance, regardless of the economic scenario” since “Regardless of what happens at the macro level, the fiscal result will be balanced.”
“This will be the first year of fiscal surplus without default in the entire history of Argentina,” he added. This explained that “the person who usually presents the Budget is the Minister of Economy but I decided to do it personally because I am an economist and I’m proud of that.”
“I am the first president economist of Argentine history. And since I am an economist, by professional deformation, the destiny of a people is played out on the economic decisions it makes. Establishing a budget to establish what the state does with taxpayers,” he explained.
On the other hand, he argued that “lThe second reason is that I am here to propose a radically different budget. of our history” and added that “the deeper the change, the greater the effort put into it.”
“The cornerstone of this budget is zero deficit“When governments want to spend compulsively and do not have the margin to continue raising taxes, as is the case in Argentina, the only way is to borrow money or print it at the BCRA,” he explained.
BesidesMilei said that “we became the biggest defaulter in the world” and that defaulting on the debt “causes capital flight.”
“Currency is starting to become scarce and Politicians have no better idea than to establish tariffs and export dutiesand capital controls to try to retain the few dollars that the country generates. Since this causes Argentina to run out of credit in the financial markets, they have no better option than to issue money, which as we know, generates inflation,” he explained.
Criticizing the last governments, he indicated that “To combat inflation, they put in place price controls that we have known for 4,000 years do not work. and invent regulations that destroy private property and consequently increase poverty.”
On the other hand, he argued that “The tax pressure in Argentina is around 60%, “a real nonsense for a country that needs to attract capital.”
The president said that “Argentina, pAs a result of being the world’s biggest defaulter, it has no access to creditfor now… What disqualifies any type of debt, even when desirable, is never so.”
“When that alternative is exhausted, the deficit is paid by printing pesos, which is stealing from Argentines through seigniorage:Politics has stolen nearly US$25 billion in seigniorage from Argentines over the last 25 years. The problem of the deficit is nothing new. Argentina had deficits for 113 of the last 1,234 years. Those 10 years were because everything had already gone up in smoke,” he said.
Source: Ambito
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