President Javier Milei broke tradition by personally unveiling Argentina’s 2025 budget to Congress, marking a seismic shift in the nation’s fiscal approach. It was the first time in Argentine history that a president, not the Economy Minister, presented the budget.
Milei’s bold goal is to achieve a zero deficit, a significant departure from Argentina’s past fiscal struggles. He plans to prioritize savings before determining spending, flipping the traditional budgeting process.
The 2025 budget projects a 5% GDP growth and a significant decrease in inflation. Milei’s administration has reported a fiscal surplus in 2024, a sharp contrast to the deficit in 2023.
However, these gains come at a cost, with public works suspended, pensions reduced, and provincial transfers cut. Still, Milei confidently stated that they have made the largest adjustment in history.
Challenges lie ahead as opposition lawmakers boycotted the budget presentation, and the government’s minority position in both congressional chambers complicates its legislative agenda.
Milei’s zero-deficit budget aims to reshape Argentina’s fiscal landscape and test political alliances. The coming months will determine if this ambitious plan can bring about a new era of fiscal discipline in the country.
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