In the first quarter of 2024, Argentina achieved a budget surplus of 275 billion pesos, marking a milestone not seen since 2008. President Javier Milei proudly announced this achievement on national television, comparing it to the year his political rival, Cristina Kirchner, came to power. He emphasized the significance of this surplus on a global scale, touting it as a historic feat.
Milei, an ultra-liberal economist who labels himself as an “anarchist-capitalist,” explained that by not overspending and avoiding excessive money printing, inflation can be controlled. He further pledged to reduce the budget deficit to zero, a more ambitious goal than the one set by the International Monetary Fund (IMF), with whom Argentina has a significant loan agreement. To reach this target, he implemented a strict austerity program that has garnered criticism. This program includes halting public works, laying off public employees, closing government offices, cutting subsidies, and freezing the budget. These measures come at a time when inflation is soaring at 290% annually and half of the population lives in poverty. Despite these challenges, Milei asserted that increasing public spending is not the solution.
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