Javier Milei reduces expenses with state-owned companies by more than half

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During his electoral campaign for the presidency of Argentina, Javier Milei had promised to cut public spending as much as possible. In fact, the image of the candidate wielding a chainsaw became a symbol of the anti-nationalization spirit in the neighboring country. Companies in sectors such as air transport and railways did not receive even a cent from the Milei government in the first two months of 2024.

According to data released by the Congressional Budget Office (OPC, in the Spanish acronym), during January and February the Argentine government transferred US$300.6 billion to state-owned companies. But, despite seeming high, this number represents a reduction of 53% compared to the same period in 2023. According to the newspaper The globein the neighboring country there are 10 companies that did not receive a cent from the Milei government in these two months.

The state-owned company Enarsa, which supplies electricity, received US$178 billion from the Treasury, which represents around 60% of the treasury’s transfers. However, these resources still represent 45% less than what the state-owned company received in the same period last year. Of the 29 companies described in the OPC data, only three received more than in 2023: Educ.ar, Ferrocarriles Argentinos and Fadea.

Milei wants to reduce state bureaucracy in Argentina | Photo: Reproduction/Social Networks

Javier Milei’s government and privatizations in Argentina

According to the Basic Law, the Milei government wants to privatize the following companies: Aerolíneas Argentinas, Enarsa, Radio y Televisión Argentina, AySA, Correo Argentino, Belgrano Cargas y Logística, Sociedad Operadora Ferroviaria, Corredores Viales and Yacimiento Carbonífero Río Turbio.

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While possible privatization processes advance at Casa Rosada, still according to The globe, all state-owned companies must remain under the scrutiny of the head of the cabinet, Nicolás Posse — to whom Milei granted rights to appoint and remove directors, define expenses, investment plans and also transfers from the Treasury to state-owned companies. The Argentine liberal government wants to reduce state bureaucracy in favor of more freedom for citizens.

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The article is in Portuguese

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