Milei celebrates the achievement of a fundamental “feat” of her plan thanks to an unprecedented adjustment

The president of Argentina, Javier Mileithis Monday celebrated the achievement of “zero deficit”, a fundamental objective of its ‘shock’ plan and which it achieved thanks to a drastic and unprecedented adjustment that affected the real economy and is the source of countless conflict fronts for the Government.

Mileiwho took over the Presidency On December 10th, he chose the national social media network to announce the results of the March public accounts, a fact that is normally reported through a simple statement and an Excel spreadsheet.

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The information is dry and complex to understand for the common citizen, but for which Mileieconomist by profession, decided to put this Monday in the ‘Prime time‘ to highlight the fulfillment of one of his campaign promises in just a few months of management.

“Is feat of historic proportions to world level”highlighted the head of state in a message recorded at the Executive headquarters and supported by his economic team.

When announcing, last December, its plan to ‘shock‘to attack the deep imbalances in the battered Argentine economy, Milei promised to close 2024 with a fiscal surplus, based on a primary deficit equivalent to 2.9% of GDP and a negative financial result of 6.1% in 2023.

The result achieved in the first quarter of the year draws attention: the fiscal surplus the accumulated amount was 3.8 trillion pesos (4,336 million dollars), equivalent to 0.6% of GDP.

And the accumulated financial result (after paying interest on the debt) was positive at 1.13 trillion pesos, equivalent to 0.2% of the GDPsomething that This has not been achieved since 2008.

Without income growth in real terms, the result is explained by what Milei calls the effect ‘chainsaw’ (cutting net expenses) and ‘blender‘ (expenses that grow at rates lower than inflation, which was 287.9% year-on-year in March, resulting in a drop in real terms).

According to Mileithere was more’chainsaw‘ what ‘blender‘.

In practice, drastic cuts were made in real terms in transfers to the provinces, in the headings for education and health, investment in public works was halted, massive layoffs in the sector Public administrationsignificant cuts in state subsidies for transport, electricity and gas and adjusted pensions far below the inflationary jump.

The methodology to recover the promised balance in public accounts meant Executive Milei strong tensions with the provincial governors – all opponents – who in many cases went to court against the adjustment measures.

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Another important source of conflict is with the university communitywhich this Tuesday promises to hold a massive march against cuts in funding for public higher education.

Teachers, health professionals and workers Public authorities multiply their forceful measures, while the General Confederation of Labor, the largest union in the country, prepares to carry out its second general strike against Milei’s adjustment plan on May 9th.

“This is him last section of a heroic effort that we, Argentines, are making“, assured Mileiwho argued that a fiscal surplus is the only way to end the “inflationary hell”.

The adjustment, which the now president promised during the campaign, would fall on “political caste”, the middle and low income classes are bearing it, with incomes that have narrowly lost the race against inflation, marginalizing thousands of people into poverty and plunging others into misery.

Without family purchasing power, consumption plummeted, with a economic activity declining due to the impact on demand for goods and services.

But although private economists project a 3.5% contraction in GDP by 2024, Milei was optimistic this Monday.

He stated that recovery will come from the hand of mining, hydrocarbons and agriculture, the recovery of real wages and private investment.

Source: Elcomercio

jack

I am Jack Morton and I work in 24 News Recorder. I mostly cover world news and I have also authored 24 news recorder. I find this work highly interesting and it allows me to keep up with current events happening around the world.