The presidentand Javier Milei He ended the first year of his administration with the mission accomplished in terms of public finances. He managed to correct in one year a financial fiscal deficit of 4.4% and transform it into a surplus of 0.3%which implies an adjustment of 4.7%. How this came about will be a matter of debate.
The Ministry of Economy reported that “In 2024, the National Public Sector (SPN) recorded a primary surplus of 1.8% of GDP and a financial surplus of 0.3% of GDP.”. “This result contrasts with the primary and financial deficit of 2.9% of GDP and 4.6% of GDP (excluding extraordinary income from the bidding for 5G frequencies), respectively, recorded in 2023,” says the Treasury Palace. in a statement.
In general terms, throughout the past year lCurrent income totaled about $98 billion, while current expenses were $93.8 billion. The accumulated primary surplus was $10.7 billion and the financial surplus was $1.7 billion.
As indicated by the Argentine Institute of Fiscal Analysis (IARAF), last year In 2024, 15 of the 16 national expenditures fell in real terms. The fall in primary spending of 27.5%. The exception was spending on universal allocations for social protection with an increase of 39%.
The three expenses that fell the most were: capital transfers to provinces (-96%), real direct investment (-70%) and current transfers to provinces (-67.8%).
In the accumulated of the year, the interannual reduction of the Cash base national primary public expenditure was $39.8 billion in constant December pesos (-27.5% real). Of the total expenses that fell, it can be seen that the Retirements and pensions supported 19%, real direct investment 15%, transfers to provinces 17%, social programs 12%, energy subsidies 10%, salaries 9%, among the most important expenses. The IARAF report indicates that it is also the most important drop in spending since 1994.
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December numbers
According to the information of the Ministry of Economy, durant December, the SPN registered a negative financial result of $1.55 billion, resulting from a negative primary result of $1.30 billion and a net public debt interest payment from the intra-public sector for $256,260 million. Economía highlights that “this result is lower in nominal terms than in December 2023.”
In detail, the total income of the SPN in the last month of the year they reached $9.8 billion (+133.5% year-on-year.). Regarding tax collection, it showed a growth of 135.1%, mainly explained by the variation in income corresponding to Profits (218.7%), Tax on Debits and Credits (180.7% ), and the Contributions and Contributions to Social Security (+166.6%).
On the other hand, primary expenses reached $11.1 billion (79.7%). Regarding Social Security benefits, they amounted to $7.2 billion (132.2%), product of the impact of the mobility formula approved by Law No. 27,609 and DNU 274/24. . Besides, Remunerations reached $1.6 billion product of the increases granted within the framework of the agreed salary policies
Source: Ambito
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