Milei declares quasi-fiscal deficit eliminated and $100 billion returned to Argentines

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Source: Infobae

Milei declares quasi-fiscal deficit eliminated and $100 billion returned to Argentines

The Editor, based on what Javier Milei, President of Argentina said

Milei credited Santiago Bausili, Pablo Quirno, and Luis Caputo with restoring the Central Bank's balance sheet and eliminating the quasi-fiscal deficit, valued at 15 points of GDP. According to Milei, at the close of 2023 the Central Bank was running double the deficit of the Treasury, with maturities equivalent to four monetary bases in a single day and nine in a month — a condition he described as a prelude to hyperinflation. Whether the consolidation of the BCRA's balance sheet is irreversible, or whether contingent liabilities remain off-balance-sheet, has not been independently verified.

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Milei puts net job creation at 113,000 and touts legislative reforms unseen in 40 years

The Editor, based on what Javier Milei, President of Argentina said

Milei broke down the employment figures: a drop of 241,000 formal salaried workers, a rise of 346,000 self-employed and 33,000 unregistered workers, yielding a net balance of 113,000 jobs — in an economy he said had not created employment since 2011. He linked informal employment to the objective of the Labor Modernization Law, presented as a tool for formalization. He listed recently passed reforms — the Labor Modernization Law, tax innocence measure, zero-deficit law, Mercosur-EU agreement, glacier law, and lowering the age of criminal responsibility — attributing them to a span of roughly six weeks, a timeline critics may contest on grounds of effective implementation.

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Milei claims 5-point GDP adjustment in one month under Caputo, reversing a 20-point accumulated deficit

The Editor, based on what Javier Milei, President of Argentina said

Milei credited Economy Minister Luis Caputo with an adjustment of approximately 5 points of GDP in a single month, reversing an accumulated deficit of 20 points inherited from the previous administration and restoring fiscal balance. He ruled out debt as an instrument, calling it 'profoundly immoral' for shifting costs onto generations with no right to vote. The scale and speed of the adjustment, invoked as a 123-year historical record, is presented in the speech without reference to external audits or a methodology explaining how the 20-point accumulated figure was calculated.

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Milei blames 'crony businessmen,' media, and politicians for speculative attack equal to 50% of M2 in 2024

The Editor, based on what Javier Milei, President of Argentina said

Milei argued that following the May 2024 elections, a coalition of 'crony businessmen,' media outlets, politicians, and commentators coordinated a sabotage of the economic program, driving a currency run equivalent to 50% of M2 — the largest in Argentine history, he claimed. He attributed the resulting price spike to a collapse in money demand rather than monetary emission, noting that the monetary base remained constant. He said the opposition introduced 40 bills aimed at breaking the fiscal balance, without identifying the specific legislation or its sponsors.

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Milei says his government lifted 14 million out of poverty with a drop of more than 27 percentage points

The Editor, based on what Javier Milei, President of Argentina said

Milei credited Sandra Petovelo, head of the Ministry of Human Capital, and Patricia Bullrich with the poverty reduction, which he said fell from a peak of 57% — when his government 'came clean' about the figures — by more than 27 points. He argued that without any increase in spending, effective transfers to the most vulnerable had doubled, through what he described as a pincer movement with Bullrich against Piquetero organizations. He cited no official statistical source for the 14 million figure and did not specify the exact measurement period used.

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