La Derecha Diario Economic miracle: April closed again with a financial surplus of 0.2%
'The tax cut didn't prevent maintaining balance,' Caputo emphasized on the social network X
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.
Impact and Perspectives
The positive fiscal result is not minor in a complex economic context on the global stage. Javier Milei's administration bets that budgetary discipline will function as a signal of predictability for investors, both local and international.
"Responsible fiscal management is key to ensuring sustainable growth," Caputo explained, stressing that fiscal balance is not just an accounting goal, but a condition to stabilize the economy, reduce inflation, and recover private investment.
Keys to Fiscal Balance
Among the factors explaining the result are:
- Strong adjustment of public spending.
- Reduction of discretionary transfers to provinces.
- Freezing and review of social plans and subsidies.
- Maintenance of revenue levels through withholdings and profits.
Despite having eliminated or reduced taxes like the PAIS Tax, the Government managed to sustain income through other mechanisms and sharply cut primary spending.
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