Argentina posts primary fiscal surplus of 0.5% of GDP in the first four months of 2026

Economy Minister Luis Caputo announced on Monday that, in April, Argentina posted a primary surplus of AR$632 billion (around US$452 million at the official exchange rate) and a financial surplus of AR$268 billion (US$191 million).The minister also added the accumulated fiscal surplus for the first four months of 2026. In the first four months of the year, the [country] accumulated a primary surplus of approximately 0.5% of GDP and a financial surplus of approximately 0.2% of GDP, Caputo wrote on X. Importante 2:En abril el Sector Pblico Nacional volvi a registrar supervit financiero El Sector Pblico Nacional (SPN) registr en abril un supervit primario de $632.844 millones y un supervit financiero de $268.103 millones. En el mes el pago de intereses de deuda— totocaputo (@LuisCaputoAR) May 18, 2026 Public debt interest payments excluding intra-public sector obligations totaled AR$364,741 billion (US$260 million). Caputo went on to say that fiscal surplus is consistent with strict management of public spending, which ensures order in public accounts while resources continue to be returned to the private sector through tax cuts. This dynamic will allow Argentina to achieve three consecutive years of financial surplus by 2026 while lowering taxes and honoring all [state expenditures], something unprecedented in Argentine history, the minister said. During April, total revenues amounted to AR$13.4 trillion (US$13.5 million), representing a nominal increase of 29.6% but a real decline of 2.1% after adjusting for inflation. Primary spending, meanwhile, totaled AR$ 12.7 trillion, marking a nominal increase of 34.5% and a real increase of 0.8%. The difference was largely driven by capital expenditures, which reached AR$420 billion (US$300 million), representing a real increase of 68% compared to the prior year. As a result, primary surplus fell 16.5% compared to the result recorded in April 2025. Public accounts have closed with a positive balance for the fourth consecutive month. Tight grip on the fiscal result Faced with falling revenues, Caputo has relied on spending cuts proportional to the decline in resources, while waiting for economic conditions causing the drop in tax collection to reverse. A report by consultancy firm Empiria, led by former Economy Minister Hernn Lacunza, states that the decline in state revenue is mainly due to weaker economic activity rather than fiscal policy measures associated with tax cuts. The report notes that only 3% of the revenue loss is attributable to tax reductions. Among the taxes that changed year-over-year are fuel taxes and export duties. The remaining 97% of revenue comes from taxes that remained unchanged, including tariffs, VAT, and income tax, among others. However, a report from the Argentine Institute for Fiscal Analysis (IARAF, by its Spanish initials) indicated that by March 2026 the 12-month fiscal surplus was equivalent to 1.4% of GDP.  In order to meet this years 1.6% target agreed upon with the IMF, the government must maintain the current balance between spending and revenues through December. Government cuts The news comes on the heels of an announcement published in the Official Gazette last week that the government had decided to slash 211 programs across different areas. According to the measure, the savings amount to 2.8 trillion pesos (approximately US$1.98 billion at the official dollar rate). According to a recent report, Aprils tax revenue numbers were down roughly 4% in real terms. The drop was driven mainly by a fall in revenue from commodity export duties, chiefly beef and grains, which plunged 34.4% year-on-year in real terms, according to estimates by the Argentine Institute of Fiscal Analysis (in Spanish, IARAF). This story was originally published in mbito