In the first quarter of 2024, Argentina achieved a budget surplus of 275 billion pesos, a feat not seen in over a decade. President Javier Milei announced this achievement on national television, drawing comparisons to the year his political rival, Cristina Kirchner, came to power. Milei emphasized the historical significance of this surplus, calling it an “exploit” on a global scale.
Milei’s success was due to his strict adherence to fiscal responsibility and his refusal to print more money. As an ultra-liberal economist, Milei knew that by avoiding overspending and maintaining low inflation rates, he could prevent economic instability.
Milei also declared his intention to eliminate the budget deficit completely, a goal more ambitious than the one mandated by the International Monetary Fund (IMF), with whom Argentina has a loan agreement of $44 billion. In order to achieve this goal, Milei initiated a strict austerity program that has faced criticism.
This program includes halting public works, laying off public employees, closing government offices, reducing subsidies and freezing the budget. Despite these measures being controversial and causing hardship for many Argentinians living in poverty during a time when inflation is at an annual rate of 290%, Milei urged the public not to rely on increased public spending as a solution to economic problems.
In conclusion, President Javier Milei’s achievement of a budget surplus in Q1 2024 is commendable and sets an example for other countries struggling with economic instability. His commitment to fiscal responsibility and his ambition to eliminate the budget deficit completely will have long-term benefits for Argentina’s economy and its people.
