The wild fiscal imbalance left by Sergio Massa

“The reason for the one-point increase in the deficit during 2015 was not only because the previous year had been a bad year for the economy – the dollar had appreciated and the price of raw materials had fallen – but also because in view of the presidential elections I decided to increase spending. Small digression: I am very amused by those who say that I made no effort to make Scioli win the elections… I increased the fiscal deficit by one point of GDP to inject resources into the economy! My God!…How some do nothing but repeat what they read in Clarín and Nación”.

Paragraph written by former president Cristina Kirchner in her memoirs Best regardsreferring to the rigor with which public spending was allocated that year.

Perhaps remembering that experience, former minister and former presidential candidate Sergio Massa applied a similar and strengthened formula last year. From his inexhaustible “clown pocket” came out every week a silver top distinct. Be it freezing rates – increased spending on subsidies – or fuel prices; granting different bonuses to certain sectors or eliminating the income tax for most of the country’s highest-paid workers.

It is estimated that in this way we can bring some relief to people “who were going through a bad time due to the Macri-IMF agreement”, Massa expanded spending by about 2.5 billion pesosequal, according to their estimates, to 1.4 points of GDP. He placed the State Treasury at his feet, without considering the consequences.

What was clear is that the Kirchnerist-Massist government had to aim for the vote but did not have to endure many street protests or general strikes. It is very difficult to protest against the fiscal deficit, even if the inflation and poverty it generates on a daily basis were and are visible.

Today’s protests are aimed at those who want to do, so says the opposition, a “wild adaptation”. More: the one who promoted what could be defined as true “wild discordance” pretends not to understand. A few weeks ago he made it known that, perhaps thanks to the success of his management, he had received job offers from three foreign investment funds, although his last appearance was while he was eating a barbecue in a barbecue area with a group of mayors of the Renovator Front..

The adjustment to reduce the fiscal deficit has been under discussion in Congress for two weeks. In these hours, what will remain in place of the Omnibus Law is being defined.

But the debate that was generated was very illustrative and interesting, fueled by both legislators and representatives of various sectors.

It’s no different. On the road to achieving fiscal balance, the government has no choice but to do so distribute the bitterness. Whether it is an increase in withholdings, or the replacement of earnings – the Aconcagua of silver plans – or the adjustment that pensions will undergo.

In the middle, all the lobbies, large or small, took the field to defend their side.

Sergio Massa has announced that he has signed a contract with the Planeta publishing house to put his managerial experience into a book. If the former minister wanted, he could appeal to a more or less famous “meme” of two boys driving at high speed along the seafront of Mar del Plata and one of them tells it to his partner, to illustrate the his position. “IF we kill ourselves, we kill ourselves”