OAN Staff Blake Wolf
2:21 PM – Monday, September 16, 2024
Argentina’s Libertarian president, Javier Milei, stuck to his 2025 budget commitment during a presentation to Congress on Sunday, vowing that he would defend Argentina’s fiscal balance, regardless of macroeconomic issues.
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Milei himself pitched the budget to Congress, a role which is normally delegated to the economy minister. The president warned lawmakers that he will not budge on his pledge to combat the country’s fiscal deficit.
Milei continued, stating that every bill that threatens the goal of a fiscal surplus would be vetoed, as he continues to attack extreme levels of inflation while balancing the country’s budget.
Milei added that the only way he would consider increasing government spending is if the country balanced the increase by equally decreasing spending elsewhere.
“If not, it will be vetoed,” he asserted. “We will only discuss the increase in spending when it comes along with an explanation of what we’ll cut to compensate for it,” Milei continued.
“This draft budget… has a methodology that protects the fiscal balance no matter what the economic scenario is,” he added.
Milei has been embattled with Congress as he marches towards his singular goal of reducing the extreme inflation levels, which have reached levels nearing 300%, warning that spending increases would not reach compliance with the International Monetary Fund (IMF), putting the country’s $800 million bailout loan in jeopardy.
“The cornerstone of this budget is the first truth of macroeconomics, a truth that for many years has been neglected in Argentina: that of zero deficit,” Milei stated during his address to congress. “Managing means cleaning up the balance sheet, deactivating the debt bomb that we inherited.”
However, the Libertarian president has an uphill battle, as he controls less than 15% of seats. Nevertheless, Milei presses on, shifting his approach after previously calling Congress “the rat’s nest.”
“The budget is a declaration of principles,” stated Argentinian economist Agustín Almada. “Even if there is no compromise from the opposition. Milei will continue pursuing this fiscal contraction.”
Milei says his spending cuts are required to restore market confidence in the country and to stabilize inflation rates, which resulted in the country garnering a fiscal surplus, a net positive the country has not seen in nearly two decades.
“In the short term, we will have suffering. But after that, we will emerge,” Milei maintained.
Additionally, Milei previously warned that his economic policies would only hurt at first as the social services and regulations were slashed. However, Milei’s approval ratings have still remained somewhat high at around 50%, according to a survey by Argentina-based consulting firm Circuitos.
“It’s not his fault, it’s the Peronists who ruined the country, and Milei is trying to do his best,” said taxi driver Rainer Silva, who spoke to the press. “He’s like [Donald] Trump, everyone’s against him.”
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