Government announces fiscal surplus in February for second month

The Argentine government announced a fiscal surplus in February, marking two consecutive months of positive balance. Economy Minister Luis Caputo released the public sector data and highlighted spending reductions.

On March 16, 2026, the Argentine government reported achieving a fiscal surplus in February, continuing two consecutive months of positive results. Economy Minister Luis Caputo disseminated the national public sector data, underscoring reductions in spending as a key element. The announcement appeared on TN, focusing on fiscal management advancements.

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Argentine Senate chamber during 2026 budget approval vote: 46-25-1 tally, ruling party celebrates fiscal balance while opposition protests education cuts.
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Argentine Senate approves 2026 balanced budget amid education funding controversy

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Following tense anticipation, Argentina's National Senate approved the 2026 Budget on December 26 with 46 votes in favor, 25 against, and one abstention, achieving the first fiscal balance in decades despite opposition criticism over cuts to education and science funding. The ruling party hailed the milestone, while opponents decried impacts on key sectors.

Former Economy Minister Hernán Lacunza praised improvements in public accounts for 2024 and 2025 but warned that by the end of 2025, the fiscal situation lacks room for additional maneuvers. His analysis shows an official surplus of 0.2% of GDP, though adjustments for interest and inflation reveal larger deficits. Lacunza stressed that the end of the financial normalization process will demand greater savings efforts.

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Argentina's government under Javier Milei is pushing to privatize six state-owned companies to secure dollars and bolster reserves, even though four ended 2025 with financial surpluses. State firms collectively posted a $903 billion surplus last year, despite an operating deficit.

Public Accounts Minister David Amiel revealed a preliminary estimate of the tax revenue surplus from rising fuel prices, totaling around 270 million euros for March. The statement aims to counter opposition claims that the state is profiting from the crisis. Details include 120 million euros from VAT and 150 million from excise duties.

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The National Institute of Statistics and Censuses (INDEC) revealed that Argentina obtained a gain of US$ 3.509 million in 2025 thanks to improved terms of trade, driven by a sharper drop in import prices than in exports. Import prices fell 4.5% year-over-year, while export prices declined only 0.6%, raising the index by 4%. This evolution contributed to a trade surplus of US$ 11.286 million.

Following the U.S. appeals court's recent annulment of a $16 billion YPF expropriation ruling, Argentina gains partial relief from international litigation pressures. However, claims exceeding US$10 billion persist in cases involving debt, GDP-linked bonds, holdouts, Aerolíneas Argentinas, and related matters, amid reported government infighting.

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Argentina's Senate will convene this Friday to approve the 2026 Budget, with secured support for general approval but resistance to Article 30, which eliminates funding targets for education and science. The ruling party aims to pass it unchanged after lower house approval, while negotiating with allies to protect the controversial provisions. Javier Milei's government views this law as essential for its fiscal roadmap and signals to international markets.

 

 

 

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