Javier Milei's government had a financial surplus again in March.

The Government of Javier Milei announced that during March a primary surplus of $745.339 million was achieved, equivalent to 0.1% of the Gross Domestic Product (GDP), and a financial surplus of $398.909 million.

With these data, the first quarter of the year ended with an accumulated primary surplus of 0.5% of GDP and a financial surplus of 0.2%, despite the tax cuts and the payment of net interest of $346.430 million within the public sector itself.

According to the Ministry of Economy, this result was achieved even in a scenario of lower tax burden. This is due to the end of the PAIS Tax in December, which had contributed 0.3% of GDP in the same period of the previous year, the elimination and temporary reduction of export duties for exporters who settle on time, and the repeal of the suspension of exclusion certificates, which affected VAT and Income Tax collection in foreign trade operations.

This fiscal performance adds to the financial surplus achieved in 2024, the first in 14 years and the most significant in 16, with the full compliance of the commitments assumed by the national government. According to the economic department, these numbers reflect the Milei Government's commitment to balancing public accounts, which remains a core of the economic program. In this line, an additional adjustment for 2025 equivalent to 0.3% of GDP was carried out, thus raising the annual primary surplus target from 1.3% to 1.6% of GDP.

The message from Luis Caputo

On his X account, the Minister of Economy, Luis "Toto" Caputo, celebrated the announcement: "IMPORTANT: MARCH RECORDED FINANCIAL SURPLUS," he stated.

"In March 2025 the National Public Sector (NPS) recorded a primary surplus of $745.339 million (approximately 0.1% of GDP) and a financial surplus of $398.909 million, accumulating in the first quarter of the year a primary surplus of approximately 0.5% of GDP and a financial surplus of 0.2% of GDP. Additionally, net interest payments of intra-public sector holdings of $346.430 million were recorded," Caputo detailed.

Regarding the tax cuts, the minister explained: "The surplus was achieved simultaneously with the implementation of various tax reduction measures that have been implemented in recent months."

"Among them are: i) the expiration of the PAIS Tax in December (it had contributed 0.3% of GDP in the first quarter of 2024), ii) the temporary reduction of export duties for exporters who comply with the established deadline for foreign exchange settlement, as stipulated by Decree 38/2025, and iii) the repeal from March of the suspension of exclusion certificates, which negatively impacted the collection of customs perceptions in VAT and Income Tax," he added.