The Government of Javier Milei recorded a new financial surplus in the month of May of $662.123 million, driven by a primary result of $1.696.917 million and a net public debt interest payment from the intra-public sector of $1.034.795 million.
With these numbers, the libertarian administration maintains its fiscal balance strategy by accumulating, in the first five months of the year, a financial surplus close to 0.3% of the Gross Domestic Product (GDP) and a primary surplus of approximately 0.8% of GDP, reaffirming the fiscal anchor as one of the pillars of the economic program.
In terms of revenue, during May the National Public Sector (NPS) reached $11.374.130 million, representing a year-on-year increase of 23.6%.
Javier Milei and Luis Caputo
On the expenditure side, the primary expenditures of the NPS reached $9.677.213 million in May, with a year-on-year increase of 40.8%. Within this category, social benefits amounted to $6.291.623 million (+57.3% year-on-year), reflecting the impact of the mobility formula approved by Law No. 27.609 and Decree 274/24.
A key piece of fiscal management was the reduction of economic subsidies, which recorded a drop of $372.894 million (-33.7% year-on-year). In particular, energy subsidies decreased by $465.801 million (-49.1%), while those for transportation increased by $96.948 million (+64.2%).
President Javier Milei
Additionally, it was noted that primary spending decreased by 2.2% year-on-year in real terms, while key items such as the Universal Child Allowance grew by 8.6% and contributory pensions and retirements increased by 1.2%, showing a prioritization of social spending within the adjustment scheme.
“This result reaffirms the commitment to the fiscal anchor, a fundamental pillar of the economic program. Order in public accounts contributes to economic stability and allows for the continued return of resources to the private sector in the form of tax reductions,” stated the Minister of Economy, Luis "Toto" Caputo.
Thus, the fiscal balance of Milei's Government remains strong as a central tool to stabilize the economy, strengthen confidence, and advance an agenda of tax reduction.
