Inflation control and zero deficit, the axes

Amid economic turbulence and the ups and downs of the dollar, the Government sent this Wednesday a preliminary report on the 2025 Budget project in which Javier Milei’s decision is highlighted maintain zero deficit y highlights the decline in inflation which occurred in the first half of his administration.

“The sustained fiscal balance, adopting bold measures that allowed us to advance more quickly than expected towards fiscal balance, the slowdown in inflation, the improvement of the Central Bank’s balance sheet and the strengthening of international reserves,” the document highlights at the beginning.

In the draft sent to Congress, the Government states that during 2025 it will seek to “maintain the conditions of macroeconomic stability that allow the definitive takeoff of the country’s productive potential, generating a favorable environment for the increase of private investment, an improvement in productivity, and the growth of activity, employment and income.”

This document was sent prior to the 2025 Budget project that the Minister of Economy, Luis Caputo, must formally present on September 15, as established by the Financial Administration Law, to open the treatment in the Chamber of Deputies.

The report also highlights the government’s decision to eliminate the intermediation of social organisations in the management of welfare plans and speaks of “significant efforts to expand social assistance to mothers and children in the most vulnerable sectors and to protect the purchasing power of pensions.”

“It is a priority for this administration to continue with the zero deficit policy, strengthening the effectiveness and efficiency of public spending, emphasizing the reduction of political spending to give priority to sustaining the income of the most vulnerable sectors,” the document, which was released this Wednesday in the Chamber of Deputies, also underlines.

As he stated in the mega DNU 70/23 and in the recently approved Ley Bases, Milei also highlighted the process of “modernization and simplification of the State.” In this sense, the Executive announces that it is working on the search for “a modern, effective, efficient, simple and useful State for citizens.”

And it confirms Milei’s spirit of giving priority to the business sector by highlighting that the intention is to move towards a centralized public administration “in its essential functions so as not to hinder the conditions for the development of the private sector, favoring free enterprise.”