The government of President Mauricio Macri has set a fiscal deficit target of 0,6% of gross domestic product at the end of the first quarter, 1,6% at 6 months and 2,2% at 9 months, to end the year with a deficit of 3,2%.
The data show an improvement in fiscal accounts compared to January 2017, even though US$565 million in income from the externalization of assets was recorded in that month.
Argentina recorded in January a Primary fiscal surplus of 3.929 billion pesos (US$200 million), 10% higher than the positive figure for the same month last year, the Ministry of Finance said on Tuesday (20.02.2018).
The data show an improvement in fiscal accounts compared to January 2017, even though that month recorded 11.205 billion pesos (US$565 million) in income from the externalization of assets that was carried out through a tax amnesty plan.
"The January result is good and in line with the goals (…) it allows us to be optimistic that we will meet, and exceed, the goals of the first quarter," said a Treasury official who asked not to be identified.
The government of President Mauricio Macri has set a fiscal deficit target of 0,6% of gross domestic product at the end of the first quarter, 1,6% at 6 months and 2,2% at 9 months, to end the year with a deficit of 3,2%.
The financial deficit for January, which includes interest payments, increased to 25.889 billion pesos (US$1.306 billion), compared to a fiscal deficit of 5.556 billion pesos (US$280 million) in the same month of 2017., the Ministry said.
The jump in interest payments was due to an interest payment to the central bank of 9.500 billion pesos (US$479 million) and the cancellation of some 8.000 billion pesos (US$403 million) of the coupon on dollar bonds issued by the national government a year ago, the Ministry explained.
"Despite the growth shown in January, interest payments during 2018 will be approximately 2,2% of GDP, a level similar to that observed in 2017," the government said in a statement.
Source: Reuters
We are putting our public accounts in order. We are continuing to reduce the fiscal deficit.pic.twitter.com/cqycLYwtNC
— Nicolas Dujovne (@NicoDujovne) February 20th 2018
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