Milei wants 0.2% of GDP to give it to the retirees to give it to the patronage of the field

From the Rural, a president Javier Milei in electoral mode announced this Saturday a decrease in retentions to agricultural exports, which will be permanent under his government. This wink to the field employers, which includes exports of vaccine and avian meat, corn, sorghum, sunflower, soybeans and their by -products, would have a fiscal cost of 0.2% of GDP according to an IDESA report.

From the CEPA Center they estimated that the fiscal impact would be “Between US $ 1,200 and 1,400 million, or 0.19–0.22 % of GDP”. Without official estimates, even on the fiscal impact, these calculations are based on the statements of the president who promised that the withholdings to the vaccine and avian would go from 6.75% to 5%. The withholdings to the soy would drop to 26% of 33%and its by -products will go from 31% to 24.5%. The withholdings al corn and sorghum would go from 12% to 9.5%; Sunflower, 7.5% to 5.5%.

The ads were received with applause in La Rural, and also in the “markets” that operated with rises in bonds and actions at the beginning of the week. Although they occurred after record settlement in the month of June, calculated US $ 9,121 million according to the BCRA exchange blaance, in the face of the possibility of a rise in them.

Milei and Caputo continue to repeat that “there is no money”, and under that excuse They intend to veto the increase to retirement approved weeks ago in the Senate. However, a report by the Congress Office of Congress (OPC) calculated that The fiscal impact of the rise to retirement (7.2%) is 0.2% of GDP, in the period from August to December 2025. Among the retirees and retirees who charge poverty assets, the Government chooses to benefit the dominant classes, the Agropower.

Fiscal chainsaw: benefit for few and adjustment for many

The government boasts of defending fiscal balance at all costs, but the chainsaw can yield according to political convenience. As now with the agrarian employers, although from the government they say they want to boost production for the next campaign, what is clear is that they seek the political support of this sector in the middle of the electoral career.

Some analysts argue that the current fiscal surplus gives the government a difference with respect to the fiscal goal with the IMF (1.3 % of GDP) with which this decline of retentions could be financed. This amount could also be used to finance the rise in retirement and pensions, they do not do it because they choose to benefit the patronage of the field. The same sectors that subfacture exports, and that have historically demanded the elimination of withholdings and a devaluation to increase their profitability. A measure such as the state monopoly of foreign trade could end these maneuvers of a handful of companies that control the country’s agro -export complex.

He Milei and Caputo model continues to show that its objective is to generate businesses for friends, deepen the looting of strategic resources at the cost of applying a brutal adjustment on social majorities. Without dollars in reserves, and with a currency exit that increases with the exchange delay, the government needs the arrival of the new IMF disbursement to calm the exchange tension. The external debt being a main way of departure of dollars, face the adjustment plan of the Milei government, businessmen and IMF implies the Sovereign ignorance of it.