Argentina Boasts Nine Months of Fiscal Surplus

Argentina continues its impressive streak of fiscal surplus, maintaining a primary surplus of 1.7% of GDP and a financial surplus of 0.4% of GDP in the first nine months of 2024. The government reported a primary surplus of 816,477 million pesos in September, marking the ninth consecutive month of surplus.

This positive result is attributed to significant spending cuts that offset a moderate revenue increase. Special situations such as the Special Income Regime on Personal Property Tax contributed to the revenue boost.

Argentina’s Fiscal Order and Economic Challenges

Government officials emphasize the importance of fiscal order for Argentina’s credibility, with key figures highlighting the need to maintain sustainable spending patterns. Despite revenue growth of 197.3% year-on-year, the increase lags behind the high inflation rate of 209%, leading to real income decrease.

Tax collection saw significant growth, driven by Social Security contributions, export duties, and personal property tax. However, taxes linked to economic activity grew at rates below inflation. Achieving the surplus required a substantial reduction in primary spending.