The national government closed May with a surplus and exceeded the IMF target: Luis Caputo celebrated the result.
With solid numbers, thegovernment managed to close out May with a fiscal surplus and, at the same time, exceeded the first quarterly target agreed upon with the International Monetary Fund (IMF) . This was announced by Economy Minister Luis Caputo in a social media post, where he emphasized that the goal was even higher than promised.
In May, the National Public Sector (NPS) recorded a primary surplus of $1.6 trillion —equivalent to 0.2% of the Gross Domestic Product—and a financial surplus of more than $662 billion . With these results, the cumulative primary surplus for the first five months reached $6.9 trillion , exceeding the $6 trillion required in the roadmap agreed upon with the IMF.
May: Primary and financial surplus.
In May 2025, the National Public Sector (NPS) recorded a primary surplus of $1,696,917 million (approximately 0.2% of GDP) and a financial surplus of $662,123 million, accumulating in the first five months of the year…
“ The consolidation of the fiscal order is non-negotiable ,” Caputo wrote, emphasizing that the government has fulfilled its commitments without resorting to new taxes , and has even eliminated some. Among the highlights, he mentioned the decision to eliminate the PAIS Tax starting in December 2024 , along with the reduction of withholdings on regional economies and the reduction of tariffs and internal taxes on technology products since May 20.
Wholesale inflation in May -0.3% The Domestic Wholesale Price Index (DWPI) fell 0.3% m/m in May, with domestic product prices remaining stable and imported product prices falling 4.1% m/m.
The year-over-year change was… pic.twitter.com/zMwj7wUHV9
— totocaputo (@LuisCaputoAR) June 17, 2025
The minister explained that this fiscal policy not only aims to balance the accounts, but also to relieve pressure on the private sector, improve competitiveness, and send clear signals of macroeconomic predictability .
In May, total state revenues reached $11.37 trillion , representing a 23.6% year-over-year increase. However, Caputo warned that the comparison is affected by an exceptionally high income tax base, a result of the extraordinary results of the financial system during the 2023 fiscal year.
Despite the 19.9% year-on-year drop in Income Tax , other taxes showed considerable improvement: the tax on Debits and Credits grew by 76.3% , Contributions and Contributions to Social Security increased by 64.5% , and VAT net of refunds rose by 42.9% .
On the expenditure side, primary outlays totaled $9.67 trillion , representing a 40.8% year-over-year increase. Social benefits , which remain the largest component of public spending, reached $6.29 trillion , 57.3% more than the same month last year, driven by the pension mobility formula and Decree 274/24.
Salary spending stood at $1.27 trillion (up 35.8%), in line with public sector wage agreements. Current transfers also increased, reaching $3.38 trillion, a 22.4% increase. Of this total, those allocated to the public sector grew by 59.9% , while those allocated to the private sector grew by 16.8% .
Regarding economic subsidies , the adjustment was significant. The year-on-year reduction was 33.7% , with a particularly sharp cut in energy subsidies , which fell by 49.1%. In contrast, transportation subsidies increased by 64.2%, in line with the new compensation and direct subsidy scheme implemented by the Ministry of Economy.
The government interprets these figures as an accounting achievement. Furthermore, it adds a new dimension: a political demonstration that fiscal adjustment can be implemented without descending into social crises or yielding to corporate pressure. In this sense, the "fiscal anchor" not only stabilizes macroeconomic variables but also reaffirms the executive branch's leadership over the economic agenda , consolidating the narrative of responsibility and efficiency that Milei promised during the campaign.
For the markets, this overperformance reinforces confidence in the fiscal path. So far this year, country risk has steadily declined , sovereign bonds have shown a recovery , and investors have begun to price in an improvement in the government's solvency.
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