The year 2025 marked the consolidation of the fiscal adjustment that began in December 2023. The national government recorded a primary surplus of 1.8% of GDP, its second consecutive year of positive results, cementing what the administration described as "permanent fiscal balance." The achievement rested on a combination of a real reduction in primary spending — particularly in public investment and subsidies — and sustained growth in tax revenues, supported by the recovery of economic activity and the normalization of foreign trade. However, an analysis of spending composition reveals clear winners and losers across different areas of government.
The fiscal scissors: where cuts were deepest
Public investment bore the brunt of the adjustment: national public works fell 68% in real terms between 2023 and 2025, with thousands of infrastructure projects stalled across the country. Economic subsidies — primarily for energy and transport — were also significantly reduced, though at a slower pace than initially planned due to the high political cost of utility rate increases. Public sector wages fell by nearly 30% in real terms over the 2024–2025 biennium, generating tensions in sensitive areas such as health, education, and security. In contrast, pension spending — retirement and social security benefits — proved the most resistant to cuts: inflation eroded the purchasing power of benefits in early 2024, but the quarterly indexation mechanism established by executive decree allowed for a partial subsequent recovery. To explore spending trends by function and government agency, visit our public spending dashboard, which includes data from the Ministry of Economy with historical series dating back to 2010.
Spending breakdown: who gets the most
In terms of functional composition, social security continued to be the largest component of national public spending, representing around 45% of the total. It was followed by social services — including education, health, and housing — at 25%, though with real declines in some specific programs. Debt service became relatively more significant in 2025: interest payments represented around 17% of total spending, the highest level since the 2020 debt restructuring, reflecting the growth of government liabilities in a high-interest-rate environment. Defense and security spending remained relatively stable. For a comparison of Argentina's public spending against international benchmarks and its evolution over time, the public works section of the site offers additional data on infrastructure investment.
The public spending balance in 2025 reflects the priorities of an administration that placed fiscal balance at the center of its agenda. The challenge for the coming years will be to sustain that balance without further deteriorating investment in infrastructure and human capital, which are necessary conditions for sustainable economic growth in the medium term. Consolidated public budget data are available in our interactive public spending dashboard.
Sources: Ministry of Economy (Secretary of the Treasury), INDEC, National Budget Office.
