In the middle of a new national chain of the president Javier Mileiin which high -impact economic measures were announced and a strong criticism of Congress, the economist, was launched Martín Redrado He offered a detailed analysis that did not go unnoticed.
The former president of the Central Bank, Martín Redradohe valued the firmness of the president and assured that the decisions seek to “end the writer of Kirchnerism”, referring to the role that Congress historically had in the automatic approval of initiatives of the ruling party.
Redrado, with a recognized trajectory in the economic and political sphere, referred to the announcements that include the prohibition that the Treasury requests financing from the Central Bank, the penalty of budgets with fiscal deficit and the institutionalization of measures that, according to Mileithey aim to guarantee fiscal balance as a cornerstone of the country’s economic recovery.
One of the central points of the presidential discourse was the instruction to the Ministry of Economy so that it does not resort to the Central Bank for funds to finance primary expenditure. Redrado He supported this decision, pointing out that “there must be no monetary issuance to finance public spending”, and that this measure represents one of the fundamental pillars to stabilize the economy.
“The Central Bank does not have to finance the public sector. The novelty of what Milei announced is that this change begins to be institutionalized, so that it does not depend on a person. We will see if it takes the form of resolution or decree, but the important thing is that the Ministry of Economy be prohibited to request funds from the BCRA ”he explained Redrado.
With this phrase, Redrado synthesized the spirit of the measures: to break with a logic of political functioning in which Congress, under Kirchner governments, worked as an instance of automatic approval of the Executive projects.
Control
“It is to end the orange pieces that were useless,” he added Martín Redradoin reference to legislative practices that, according to him, lacked substance and control. The economist also stressed that the presidential discourse had a political tone, with a strong electoral component.
“The second part of the message refers to the other fundamental pillar: the budgetary balance. In my opinion, this idea of penalizing the deficit must have as a axis that every budget that comes out of the congress has a fiscal surplus. It would be best to go for the obligation that the congress sanctions balanced budgets,” he said.
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