According to estimates, consolidated spending stood at 31.42% of GDP
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National public spending once again showed a decline during 2025 and reached its lowest level in the last 18 years, in line with the "chainsaw plan" promoted by Javier Milei's government.
For the second consecutive year, national public sector expenditures fell and deepened the path of reducing the size of the State set out by the current libertarian administration.
According to estimates by the Argentine Institute for Fiscal Analysis (IARAF), central administration spending went from approximately 135 billion dollars in 2023 to about USD 97 billion in 2025.
According to the director of the agency, Nadin Argañaraz, "given that 2025 spending would have been similar to 2024 in real terms, the cumulative reduction in two years would be on the order of USD 75 billion." The figures reflect a sustained contraction in spending in a context of reorganization of public accounts.
El presidente Javier Milei.
Measured in relation to Gross Domestic Product (GDP), public sector outlays recorded a 4.84% reduction compared with 2024 and a 26% reduction compared with 2023. This process responds to the decision to reduce the size of the State, to organize public finances, and to consolidate fiscal balance as one of the central pillars of the economic program, with the objective of generating economic growth and continuing to reduce taxes.
When consolidated primary public spending is considered, which includes the Nation, the provinces, the Autonomous City of Buenos Aires, and the municipalities, the reduction was 6.5 percentage points of GDP between 2023 and 2025. This way, consolidated spending stood at 31.42% of output.
The adjustment by levels of government
The data indicate that the national State accounted for most of the cut in the period analyzed. In contrast, subnational governments increased their relative share within total public outlays. In particular, provincial spending showed an increase associated with higher current expenditures, which changed the distribution of the fiscal effort within the consolidated public sector.
Javier Milei.
Despite these differences, the overall result marks continuity with what was observed in 2024 and places the total size of the State at levels comparable to those of 2008. From the fiscal analysis perspective, this behavior reflects a structural change in the composition and magnitude of public spending, with a sharp contraction at the national level and a greater relative weight of provincial and local administrations.
These data were highlighted by President Javier Milei during an interview granted to the streaming outlet Neura, in which he again defended the reduction of expenditures as the central axis of his economic program.
In that context, the head of state stated: "The chainsaw never rests" when he referred to the continuity of fiscal adjustment. He also maintained that "the real tax burden is the size of public spending, because you have to finance it" when he linked the reduction in spending with the easing of the burden on the economy.
In the same appearance, Milei pointed out that the national State "has already been brought to 2007 levels in terms of size relative to GDP" and emphasized that "in order to move forward on the tax front, it is essential to lower public spending."
