Gustavo Barresi: “18,000 pesos para cada pensioner did not affect fiscal balance”

Former Finance Minister Gustavo Barresi assured that the payment of 18,000 pesos to retirees and pensioners, in the framework of the IFE, did not affect the fiscal balance

He argued that the funds were taken from the Treasury surplus and from other funds that could be used to balance the accounts. He also said that the measure was not inflationary because it was not financed with the issuance of money.

"The 18,000 pesos for each retiree and pensioner did not affect the fiscal balance," said Barresi. "The funds were taken from the Treasury surplus and from other funds that could be used to balance the accounts."

"The measure was not inflationary because it was not financed with the issuance of money," he added. "The government has not increased the monetary base, so there is no risk of inflation."

Barresi's statements contradict those of the current Minister of Economy, Sergio Massa, who has said that the payment of 18,000 pesos to retirees and pensioners will have a fiscal cost of 150,000 million pesos.

It is worth noting that Barresi is a former Minister of Economy during the government of Mauricio Macri and is currently an advisor to the PRO party.

Conclusions

The debate over the fiscal impact of the payment of 18,000 pesos to retirees and pensioners is likely to continue in the coming weeks. The government will have to decide whether to extend the measure and how to finance it.

The opposition, for its part, will continue to criticize the measure, arguing that it is unsustainable in the long term.