The Finance Secretary described the financial surplus in September as “unprecedented.” Until August, the public accounts had accumulated a financial surplus of close to 0.4% of GDP.
The Secretary of Finance, Pablo Quirnoanticipated this Wednesday that the Public accounts recorded a new financial surplus in September and evaluated it as something “unprecedented”. Thus, the Government has had nine consecutive months of positive balance.
“It is unprecedented for Argentina to have nine months of financial surplus without being in default”said the official of the Treasury Palace when opening a Nordic business seminar held in Buenos AiresHe also stated that “comparisons with other periods are overshadowed.”
Public accounts accumulate a financial surplus close to 0.4% of GDP
In August, the National Public Sector (NPS) exhibited a primary outcome of $899.660 million and a Financial surplus of $3.531 billionafter the payment of interest for $896.130 million. According to official information, the SPN accumulated in the first eight months of the year a financial surplus of approximately 0.4% of GDP (primary surplus of approximately 1.5% of GDP).
“This is unprecedented. We are creating the conditions for the private sector to develop.”Quirno added. In this regard, he insisted on the request to businessmen to invest in the country: “We mark the field, we paint the field, we put up the nets and we bring the balls, but the protagonists are you.”
The Finance Secretary’s participation was limited to two minutes with the presentation of the Nordic companies seminar, without any references to any other government measures or actions.
Report reveals that more than 99% of the surplus is used to pay debt interest
The surplus shown by the public accounts, according to a fiscal report carried out by the Center for Political Economy of Argentina (CEPA)are used to pay interest on the country’s commitments.
Of the August fiscal surplus of $899.66 billion, approximately $896.130 million were allocated to the payment of debt interestThe result is a meager balance of $3.531 million in favor of the countrywithout considering the interests corresponding to the LEFI and LECAPS that would leave the balance in deficit.
Source: Ambito
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