Javier Milei's administration achieved a balanced budget in January, its first month of office, the first time the government of Argentina has had a positive balance in over a decade..
Argentina sees first monthly budget surplus in 12 years | Straits Times | AFP:
February 18, 2024 - "The Argentine government in January saw its first monthly budget surplus in nearly 12 years, as new President Javier Milei continues to push for strong spending cuts, the Economy Ministry announced. January was the first full month in office for Mr Milei, a far-right [sic] libertarian who took office in December, and it ended with a positive balance for public-sector finances of US$589 million (S$800 million) at the official exchange rate, the government said late on Feb 16. The figure includes payment of interest on the public debt....
"Milei has been negotiating with the International Monetary Fund over its US$44 billion loan and has vowed to achieve balance in public finances in 2024 [see video]. 'The zero deficit is not negotiable,' Economy Minister Luis Caputo said on Feb 16 on X, formerly Twitter....
"Following a 50 per cent devaluation of the peso, a lifting of price controls and strong rate increases, Argentina saw an inflation rate for January of 20.6 per cent, with a 12-month rate of 254.2 per cent. The year 2023, the final year of the centre-left government of Mr Alberto Fernandez, ended with a 211 per cent inflation rate. With poverty affecting 45 per cent of the population, Mr Milei has predicted an economic rebound within three months."
Read more: https://www.straitstimes.com/world/argentina-sees-first-monthly-budget-surplus-in-12-years
How Javier Milei Would Cut Argentina Spending by 14% of GDP | Nothing Personal | September 22, 2023:
Javier Milei’s Argentine success is paving the way for freedom and prosperity across Latin America | New York Post | Axel Kaiser:
February 14, 2024 - "Shortly after coming to power, Milei dramatically narrowed the gap between the official and the market exchange rates by devaluing the peso 54%. He went on to shut down ministries and public offices and lay off swarms of useless bureaucrats. He also passed an emergency decree with 300 measures to deregulate the economy. Among them are the privatization of all public companies, the elimination of rent controls, an open-sky policy, cutting subsidies to different sectors of the economy, ending import restrictions, deregulating satellite services and many others....
"During the first month of Milei’s administration, public spending decreased by 30% in real terms compared with the previous year and the previous month. In other words, the government is already spending almost a third less than in the same period last year when adjusted for inflation. Needless to say, this is only the beginning of the 6.1 points of gross domestic product worth of deficit spending Milei has to adjust to restore a balanced budget. Most of this adjustment (3.2% of GDP) will affect the public sector by cutting spending, while a temporary taxation increase (2.9% of GDP) will do the rest.
"Despite the harsh measures adopted so far and the challenges some of them face in the courts and congress, Milei’s popularity has stayed at around 60%.... [T]he demonstrations the infamous Argentinian unions orchestrated have not been able to harm the government. If anything, they have contributed to increased public support for Milei’s efforts to fight what he calls the 'caste' of 'parasites' that have exploited Argentinians for so long.
"If he is successful in getting rid of the 'caste\” so he can turn Argentina around, the ideological and political impact throughout the region will be enormous — even more so because he and other free-market advocates have already achieved a lasting change in the mentality and values of millions of young people by replacing collectivist and statist ideas with notions of individual responsibility and freedom."
No comments:
Post a Comment