September 20th, 2024
1. Javier Milei presents his bill for the 2025 budget
On September 15, President Javier Milei presented the bill for the General Budget of the National Administration for Fiscal Year 2025 in the Chamber of Deputies. This is the first National Budget bill presented by Javier Milei during his administration, since for this year the items allocated in 2023 were extended. Regarding the methodology used to prepare the draft National Budget, Milei said: “The deficit was always a consequence of thinking first how much to spend, and then to see how to achieve it. We are going to do it the other way around, thinking first how much we have to save, and then see how much we can spend. That is why we are proposing an unbreakable fiscal rule; for this budget and for all budgets that come from now on.” During the presentation, Milei reaffirmed his commitment to reduce consolidated public spending to 25% of GDP, which implies an additional adjustment of $60 billion by the provinces. He pointed out that, in order to achieve economic stability, the country must eliminate the fiscal deficit, reduce taxes and rely on economic freedom, which would improve the quality of life and stop the exodus of talent.
Perfil: Presupuesto 2025: cuáles son las prioridades del gobierno
2. Executive branch negotiates with deputies, senators and governors for 2025 budget approval
The Minister of Economy, Luis Caputo, and the Chief of Cabinet and head of the Interior portfolio, Guillermo Francos, met with the heads of the Chambers of Deputies and Senators to negotiate the points of the Budget 2025 and get it approved. The committee meetings would start next week. The opposition formally requested that all the ministers of Milei, and other national officials, be present. The Executive Branch seeks to avoid repeating what happened with the Bases Law, whose approval took a semester. For the time being, it was reported that they expect to start the discussion in the Chamber of Deputies in the first weeks of October in order not to go beyond the beginning of November to the Senate, the most adverse chamber for the Government. The day after the presentation of the Budget by the President, Francos and Caputo met by videoconference with governors and provincial representatives from 18 districts, in order to clarify some of the project’s scopes. All the governors expressed their rejection to the $60 billion cut announced by Milei. On Monday there was also a meeting with pro-government and allied deputies. Besides, the government continued its actions with a barbecue in Olivos to celebrate “the 87 heroes” of the presidential veto of the pension reform, in an attempt to shield the legislative alliances.
La Voz: Caputo y Francos diseñan la estrategia del Presupuesto 2025 en el Congreso
3. Argentina’s GDP falls 1.7% year on year
According to INDEC in its Activity Level Progress Report for the second quarter of 2024, Argentina’s Gross Domestic Product (GDP) fell by 1.7% year-on-year, accumulating a 3.4% decline in the first half of the year. The most affected sectors were construction, manufacturing and commerce, while agriculture experienced a significant recovery. Although the economy remains in recession, some indicators suggest a possible improvement for the third quarter, although the recovery process will be slow and uneven.
INDEC: Avance del Nivel de Actividad
4. RIPTE records a 6.6% wage increase in July
The Index of Average Taxable Remuneration of Stable Workers (RIPTE) recorded a 6.6% salary increase in July, exceeding the 4% inflation of that month. This is the fifth consecutive month in which wages grew above inflation, with a real improvement of 2.5%. However, RIPTE only measures the income of employees with at least 13 months of continuous employment and is considered less representative than other wage indicators, such as those published by Indec, which reflect a recovery of purchasing power.
Secretaría de Trabajo, Empleo y Seguridad Social: RIPTE
5. Milei and Caputo travel to New York to participate in the UN General Assembly
President Javier Milei will undertake this Saturday a new trip to the United States to give his first speech before the UN General Assembly. The Minister of Economy, Luis Caputo, will be part of the presidential delegation, according to official sources. The agenda is not yet closed, but in principle all the activity will be concentrated in New York and the minister will go alone, without other technical staff from his portfolio. So far, no meetings with White House officials or with the staff of the International Monetary Fund (IMF) have been scheduled. Milei and Caputo’s trip to the United States is taking place while the questions about the beginning of the negotiation with the Fund are growing.