In 2024, the national administration led by President Javier Milei succeeded in reducing spending by 25.9%, thus contributing to the national state's financial surplus for the first time in 14 years. This measure was essential to achieve a favorable economic balance by the end of the year.
Minimum pensions with bonuses decreased by 15%, and capital expenditures were reduced by 73.9% compared to the previous year. These actions lay the groundwork to repeat the surplus in 2025. Despite the government's claims about pensions in dollars, the decrease in spending is mainly explained by cuts in social benefits, which fell by 17% in real terms.
On the other hand, reductions in capital expenditures and adjustments in social programs stand out, with ANSES being the most affected area, having a real decline of 18.7% in payments above the minimum. Cuts were made in various areas, such as infrastructure and asset acquisition, with these points being crucial for the government's fiscal success.
The Minister of Economy, Luis Caputo, announced the achievement of the fiscal surplus in 2024, despite the deficit in December. This milestone was achieved thanks to a series of measures promoted by the president, which allowed the national state to reach a positive financial situation after 14 years. The spending cuts were reflected in various sectors, with significant reductions in social programs, energy subsidies, transfers to provinces, personnel expenses, among others.
Regarding the APN, which encompasses all areas of the national state, a cumulative primary surplus and a financial deficit were recorded in 2024. These results reflect the impact of the adjustment decisions made throughout the year. The government plans to maintain these cutting policies in 2025 to ensure fiscal stability.
The focus on reducing spending has been fundamental in achieving the financial surplus, and it is expected that these measures will continue in the coming year. President Milei has reiterated his commitment to fiscal adjustment and the containment of public spending as part of his strategy to ensure the country's economic stability.
