The national Government once again showed positive results in fiscal matters. According to the Minister of Economy, Luis Caputo, in the month of April a primary surplus of 845,949 million pesos was recorded, while the financial surplus—meaning after the payment of debt interest—reached 572,341 million pesos.
This is the fourth consecutive month of the year with a surplus, a fact that consolidates the official strategy of fiscal balance as the central axis of the economic program. Moreover, it is achieved in a context of tax reduction equivalent to two points of the GDP, as reported by Caputo himself.
Accumulated Surplus and Market Signals
During the first four months of the year, the accumulated primary surplus reached 0.6% of the Gross Domestic Product (GDP), while the financial surplus stood at 0.2% of the GDP. This implies that the State not only covered its current expenses with genuine income, but also paid debt interest without incurring new deficit.
From the Ministry of Economy, they maintain that these numbers are concrete proof of efficiency in the management of public resources, even in a framework of lower fiscal pressure. "The tax reduction did not prevent maintaining the balance," Caputo emphasized in his statements.
