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Argentina Touts 2025 Fiscal Surplus as Congress Budget Office Cites Deficit on Accrual Basis

Congress’s budget office reports an accrual-based shortfall, underscoring a dispute over cash versus accrual accounting.

Overview

  • The Economy Ministry says 2025 closed with a primary surplus of about 1.4% of GDP and a financial surplus of roughly 0.2%, or ARS 11.77 trillion and ARS 1.45 trillion, respectively.
  • Minister Luis Caputo frames the result as a second straight annual financial surplus on a cash basis, noting all national debt-service payments were met.
  • The Congressional Budget Office (OPC) reports a smaller primary surplus of ARS 9.6 trillion and a financial deficit of ARS 1.6 trillion using accrual accounting that includes unpaid obligations.
  • OPC highlights deterioration versus 2024 with a 24.6% smaller primary surplus, a 312.6% larger financial deficit, total revenues down 2.6% and total spending down 2.1%; it also records December deficits of ARS 4.1 trillion (primary) and ARS 4.6 trillion (financial).
  • Economy officials attribute the annual outcome to sharp real cuts in primary spending with protected direct social transfers, plus tax reductions exceeding 2.5% of GDP that include eliminating Impuesto PAIS and lowering export and import duties.