In 2023, Argentina experienced a primary fiscal deficit amounting to 2.9% of its Gross Domestic Product (GDP).
This information comes from the Ministry of Economy’s recent announcement.
Last year, the country’s deficit reached 5.48 trillion pesos, equal to $6.671 billion at the official exchange rate.
This figure does not include financial commitments, which were 6.1% of the GDP. In December, the nation saw a 6.2% yearly drop in public sector spending.
This reduction, amounting to 1.9 trillion pesos or $2.424 billion, resulted from careful spending management by the new administration.
Additionally, social benefit spending decreased significantly.
The government explained that this spending cut in December 2023 mainly occurred due to delays in pension payments.
The administration also worked to lessen the floating debt, which was 3.05 trillion pesos ($3.719 billion) as of December 9.
The Ministry of Economy reported a significant national public sector income increase in December.
Revenues surged by 150.4%, while tax collections rose by 147%. This improvement in December supports the government’s plan to achieve fiscal and financial balance by 2024.
The Ministry emphasizes its dedication to reaching this balance next year. The goal is part of a broader economic strategy.
This plan aims to stabilize the economy and foster conditions for continuous job growth.
Argentina aims for a primary fiscal surplus of 2% of GDP for the current year.
This target aligns with the objectives in the Extended Fund Facility (EFF) agreement with the International Monetary Fund (IMF).
The government plans to reach this target through a strong reduction in public spending.
This includes cuts in administrative expenses and subsidies for energy and transport. Additionally, the plan involves increasing revenue through higher taxes related to trade.