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Strong adjustment in spending in the first month of Milei’s management


President Javier Milei He campaigned with a chainsaw in hand to graph his cost-cutting ideas, and apparently In his first month in office he carried out that task. In fact, Compared to the first month of former president Mauricio Macri, the expenditures of the national public administration were 50% lower and 22% less than those of Alberto Fernández, says the Expenditure Monitor prepared by the consulting firm Analytica.

The report specifies that “in particular the greatest difference “It focused on retirement and pension expenditures.”

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“The slowdown in spending since the arrival of Javier Milei can be observed in its biweekly distribution,” indicates the private study. He maintains that “while in 2021 and 2022 the second fortnight represented 76% on average of the month’s spending, in 2023 it was 51%.”

“When comparing the fortnights in year-on-year terms, We see that in the first, real spending was 40% higher than the same period in 2022, while for the second it was 56% lower,” the work indicates.

The work of the consulting firm directed by economist Ricardo Delgado, details that “in December, real spending accrued without seasonality decreased by 31% compared to November, and 33.8% in interannual terms.”

“If energy subsidies are excluded, the variation is -0.7%. Although a cut was not observed in nominal terms, the monthly inflation of 25.5% implied a significant liquefaction,” the report explains.

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Thus, it is maintained that “among the items with Greater adjustments compared to December 2022 include public works (-69.4%)spending on goods and services (-56.6%), retirements and pensions (-38.3%) and social programs (-31.5%),” says the study.

In this sense, he adds that “the only item that showed an increase in year-on-year terms was transfers to provinces (+6.9%).”

“In the accumulated 2023, real accrued spending was reduced by 8.8%. The items with the greatest drop in the year were family allowances and AUH (-29.4%), economic subsidies (-20.9%), particularly those destined for energy (-25.9%) and goods and services (- 15.3%)”, concludes the work.





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