Overview

• Official data show a primary surplus of ARS 1,556,864 million in August and a financial surplus of ARS 390,301 million after ARS 1,166,564 million in interest payments.
• From January to August, the government reports a primary surplus equal to 1.3% of GDP and a financial surplus of 0.4%, keeping it close to the IMF’s 1.6% primary target for 2025.
• The consolidation relied on lower primary spending, with economic subsidies down ARS 214,933 million year over year as energy and transport outlays fell sharply.
• Economy Minister Luis Caputo defended the program and accused opponents of trying to break fiscal balance, vowing to keep public accounts in order.
• The Central Bank intervened to support the peso as sovereign bonds fell, the risk premium topped 1,400 basis points, and analysts warned that veto reversals in Congress and indexation pressures could erode gains, with some estimating new costs near 0.3% of GDP.