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Javier Milei confirmed that the Government will cancel 70 thousand public employee contracts - Infobae
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Javier Milei confirmó que el Gobierno dará de baja 70 mil contratos de empleados públicos
El Presidente habló en un foro económico sobre el ajuste que está llevando a cabo para lograr el déficit cero y se refirió a los próximos despidos en el Ejecutivo Nacional
www.infobae.com
March 26, 2024
The President spoke at an economic forum about the adjustment he is carrying out to achieve zero deficit and referred to the upcoming layoffs in the National Executive
Javier Milei (Sebastian Alonso)
Javier Milei spoke at the IEFA Latam Forum, an economic forum with the presence of businessmen, and there he confirmed that in the coming days the national government will terminate 70 thousand public employee contracts that will not be renewed as of March 31.
The President referred to this issue when explaining how he has been carrying out the fiscal adjustment since he took office in the Casa Rosada to achieve zero deficit: “We eliminated discretionary transfers to the provinces, we also fired 50,000 public employees, not only that , but also that contracts were cancelled, notice that now more contracts are falling and 70,000 contracts are going to fall.”
Regarding this, he warned: “We eliminated 200,000 social programs delivered irregularly and at no time did we neglect social policy because, in the middle, we doubled the AUH, we doubled the food card, we multiplied the assistance in the thousand day plan by three , that is , pregnant women. Not only that, but we also quadrupled the assistance for school supplies and created a mechanism so that middle-income families who go to low-fee private schools basically had a containment mechanism so that the children did not miss the school they attended. attended and not have to suffer the shock of changing schools. That is, we also had a strong social perspective in what we are doing.”
The President referred to the inheritance received
His words were just a few seconds after ensuring that both he and his team are absolutely convinced of carrying out a fiscal adjustment that has “ a lot of chainsaw and a lot of blender .” “If we wanted to do it quickly we had to use both,” he explained.
Then he mentioned one of the first measures he took upon taking office and said he was proud of having made that decision: “ We eliminated public works outright, something of which I am deeply proud since public works is a great source of corruption, of theft. , which I imagine all good people should oppose.”
At the beginning of his speech, the head of state reviewed the inheritance received from Kirchnerism: “We were always prepared to receive this hot potato, and you can see that, because if we had not taken quick measures we would have already been blown up. repeatedly. When you have twin deficits of 4 points of GDP, it is a yellow alert. If they have 8 points of GDP, not only is it a red alert, but they are going to suffer a major blow. Well, we inherited twin deficits of 17 points of GDP. More or less so that they have an order of magnitudes of the disaster we have received.”
Milei's exhibition at IEFA Latam Forum
Along the same lines, he continued: “The size of the pineapple was going to be colossal, basically the inheritance had the worst of the three worst crises in Argentina. It had a monetary imbalance that was worse than the one we had before the rodrigazo, in the year 75. We had an imbalance in the balance of the Central Bank that was worse than the one that Alfonsín had at the beginning of the year 89, which ended in hyperinflation. . And the social indicators were worse than the year 2001, that is, the previous crisis of 2002. It was literally the sum of all evils.”
And he added: “That twin deficit of 17 points of GDP was basically made up of 15 points of the consolidated fiscal deficit. Where those 15 points, 5 corresponded to the Treasury and 10 corresponded to the Central Bank. What's more, to have an order of magnitudes of the disaster that we received, basically, although throughout the previous government the monetary issue was used to finance the fiscal imbalance, for 28 points of GDP, those 28 points, 13 took place last year ”.
Given this, Milei confirmed that Argentina was on the path to hyperinflation and that its objective was to avoid it: “It was necessary to generate a very tough stabilization program, a program that we had and that we were only able to announce on the third day because we had the issue of appointments in the Central Bank. And basically it had the three fundamental elements that any stabilization program has, which was a fiscal adjustment, an exchange rate correction and the definition of a new monetary policy .
President Javier Milei
Regarding this idea, he continued: “The fundamental thing was to end the monetary issue so that there was no validation of the price increase and that it did not end up escalating and generating hyperinflation. In that sense, together with the devaluation, which was sincere, because basically the only thing we did was bring the exchange rate to the market exchange rate adjusted by country tax, and in that context, on the fiscal level, we decided to go which is called the zero deficit policy, but zero deficit seriously, not lying, that is, zero deficit in the line of the financial result, that is, after paying interest."
“That is very important because if we reached zero deficit in the financial line, it means that the debt does not grow more, and if the debt does not grow more, the debt-product relationship is not increasing, therefore, one becomes solvent. intertemporally and the consequence of this is that the country risk begins to fall and the interest rate decreases , and the interest rate regains its essential function, which is to be an intertemporal coordination mechanism, and that the growth process is related precisely with the interest rate, natural interest, that is, the market rate, not the one that a bureaucrat can manipulate from the Central Bank,” Milei said.
The head of state confirmed that the Government will cancel 70 thousand public employee contracts
Towards the end of his presentation, the President was convinced of the results that he will obtain with the implementation of his project and its economic measures, regardless of the fact that there are sectors that put "spoke in the wheel."
He did so with a mention of the decree of necessity and urgency, whose validity was rejected in the Senate although it is still in force: “ There are people who are betting on change, but this also involves political work. Evidently, politicians do not want to give up their jobs and privileges and preferred to plunge Argentines into misery with their caste privilege and overturned the DNU.”
And he noted: “Despite the filthy institutions we have, more than 20 years of populism, we can still grow and generate genuine economic growth without inflation. Despite the politics, the obstacles in the wheel and the crap they do to us.”
Finally he concluded: “There is hope because people woke up and decided to stop being lambs and be lions. There is hope because Argentines are embracing the ideas of freedom. Not only am I going to tell them that we are going to be better, they already know that we are going to be better. Therefore, Argentina has a future because that future is liberal.”
