Argentina's Radical Austerity: Milei's Push for Deeper Fiscal Cuts
Argentina's government, led by libertarian President Javier Milei, is pushing for deeper fiscal cuts to achieve a 1.6% fiscal surplus. Economy Minister Luis Caputo confirmed plans for more stringent austerity measures, which have stabilized the economy but strained public sector workers and pensioners.
In a bold move to further tighten Argentina's fiscal belt, President Javier Milei is directing his administration to intensify austerity measures. The initiative aims to secure a 1.6% fiscal surplus, Economy Minister Luis Caputo confirmed on social media on Friday.
The libertarian president's radical cost-cutting strategy has received mixed reactions: while it has breathed life into the grains-driven economy and appeased investors, it has also pressured public sector workers and pensioners.
Despite consistent monthly surpluses, as reported by local media outlet El Cronista, Milei's administration is set to announce additional budget cuts to Cabinet ministers soon. Already, the first five months have seen a primary surplus of 0.8% of GDP, aided by reduced net interest payments.
(With inputs from agencies.)
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