Argentina Posts Budget Surplus Two Years Running

Argentina recorded a budget surplus in 2025 for the second consecutive year, marking the first time the country has strung together back-to-back positive balances since 2008. The achievement signals a dramatic shift for a nation that has struggled with fiscal instability for generations.

The country's primary surplus, which excludes debt interest payments, reached 1.4 percent of GDP last year. The overall fiscal surplus hit 0.2 percent of GDP, according to Economy Minister Luis Caputo.

The turnaround stems from President Javier Milei's "zero deficit" policy launched when he took office in December 2023. Primary government spending dropped 27 percent in real terms compared to 2023, representing one of the sharpest fiscal adjustments in recent Latin American history.

What makes this story remarkable is that Argentina managed the fiscal shift while protecting its most vulnerable citizens. Social spending on child support and food aid actually grew 43 percent in real terms from December 2023 to December 2025.

The government also reduced taxes and export duties during this period, returning more than 2.5 percent of GDP to the private sector since 2024. This approach challenges the common assumption that balanced budgets require higher taxes.

The Bright Side

Argentina's success offers hope to nations wrestling with chronic deficits. The country proved that fiscal discipline doesn't mean abandoning social programs or crushing economic growth through higher taxes.

The achievement required difficult choices, including reductions in subsidies and frozen budgets for education, health, scientific research, and public works. But the payoff is a more stable economic foundation that could support sustainable growth for years to come.

President Milei emphasized that the zero deficit policy will remain a cornerstone of government strategy. "The fiscal anchor is and will be a state policy," he wrote, signaling continuity beyond any single administration.

For a country that has faced repeated economic crises, two years of surpluses represents more than numbers on a spreadsheet—it's proof that change is possible.