Javier Milei is preparing to present the 2025 Budget to Congress, an event that promises to be one of the most significant of his mandate. This budget focuses on three fundamental pillars: inflation, economic recovery and fiscal adjustment.
Javier Milei He will personally defend the project before legislators, seeking to establish a fiscal rule that guarantees balance in public accounts. However, questions remain about the depth of the adjustment measures, commonly referred to as the “chainsaw”.
One of the main challenges facing the government of Milei It is inflation, which has been a persistent problem in the Argentine economy. According to the projections of the 2025 Budget, inflation of 139% is expected for the year.
This level of inflation is alarming and reflects the structural difficulties facing the country’s economy. The government has stated that one of its priorities will be to control inflation through strict monetary and fiscal policies.
To address this issue, Budget 2025 includes measures aimed at reducing the fiscal deficit, which is expected to have a positive effect on inflation. The idea is that by reducing the deficit, the need to print money will be reduced, which in turn should help control inflation.
However, this strategy is not without risks, as too severe a fiscal adjustment could have negative effects on the real economy. The second pillar of the 2025 Budget is the economic rebound. After years of recession and stagnation, the government of Milei seeks to revive the economy through a series of structural reforms.
Adjustment and more adjustment
These reforms include liberalizing certain sectors of the economy, reducing the tax burden and promoting foreign investment. The government hopes that these measures will foster economic growth and create jobs.
However, the success of these policies will largely depend on the government’s ability to implement reforms effectively and on the response of markets and investors. Furthermore, the international context will also play a crucial role, as external factors such as global demand and international financial conditions can influence Argentina’s economic performance.
