Argentina posts six months of fiscal, financial surpluses
Adds details on surpluses, background in paragraphs 3-7
BUENOS AIRES, July 16 (Reuters) -Argentina posted primary fiscal and financial surpluses in June, the economy ministry said on Tuesday, showing the fruits of a drastic austerity package rolled out by libertarian President Javier Milei, who tookoffice in December.
Both the fiscal and financial balances are the sixth consecutive monthly surpluses, and June's financial surplus - which includes interest payments by the government - is the first time since 2008 that six in a row have been recorded, the ministry added.
The public sector logged a primary fiscal surplus of 488.57 billion Argentine pesos ($535.71 million) and a financial surplus of 238.12 billion pesos in June, down from surpluses in the trillions of pesos in the prior month.
Milei's government has vowed to reach a "zero deficit" this year to right the South American country's embattled economy.
The fiscal surplus in the first half of 2024 reached 1.1% of the nation's gross domestic product (GDP), with the financial surplus at about 0.4% of GDP, the economy ministry said.
"As such, the government's fiscal anchor continues to consolidate," the ministry said.
Milei blames years of over-spending and deep fiscal deficits for Argentina's economic woes, which include a triple-digit inflation rate.
($1 = 912 Argentinepesos)
Graphic-Argentina: fiscal balance? https://reut.rs/491BRQ2
Reporting by Walter Bianchi and Kylie Madry in Buenos Aires; Editing by Paul Simao
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