Argentina’s libertarian President Javier Milei has announced that he intends to eliminate the budget deficit entirely next year, doubling down on promises of fiscal discipline despite a recession.
Milei turned the annual budget speech, normally a routine event handled by the economy minister, into a live nationwide broadcast from Congress, as he seeks to rally public support for his nine-month administration amid growing pressure to increase spending and a dip in his ratings.
The proposal, which aims for a surplus equivalent to 1.3 per cent of GDP before interest payments in 2025, also makes ambitious projections of an economic rebound and a sharp slowdown in inflation. It forecasts growth of 5.0 per cent next year, after an expected 3.8 per cent contraction this year. It also forecasts prices rising just 18.3 per cent in the 2025 calendar year after expected inflation of 122.9 per cent this year.