LATAM Today: July 17, 2026

Research evidence excerpt

LATAM Today: July 17, 2026

Economics Research

17 July 2026 | 8:56AM EDT

RamosARGENTINA Alberto | +1(212)357-5768

alberto.ramos@gs.com

June Budget Balance Impacted by Filing-Date Extension and Seasonal Spending Goldman Sachs & Co. LLC

Pressures Sergio+1(212)357-9077Armella|

Bottom Line: The government’s overall fiscal balance printed its first deficit this year sergio.armella@gs.comGoldman Sachs & Co. LLC

in June. An ARS$670bn negative primary balance in the month, less interest on debt Santiago Tellez

of ARS$328bn, led to an overall deficit of ARS$1.02tn for the public sector. +1(212)855-0367 | santiago.tellez@gs.com

Government revenues grew 22.3% yoy with tax revenues up by a slightly lower Goldman Sachs & Co. LLC

21.7%, below the 33.5% yoy inflation print in June. During the month, revenue

collection from personal income taxes was impacted by the granted extension for

filing and payment of annual income tax returns until July. Total expenditure, in turn,

grew by 37.7% yoy, with primary spending up by a similar 37.7% yoy in June.

Spending was pressured by the semiannual bonus payment to retirees and

pensioners which are paid out every June and December.

In the first half of 2026, the cumulative primary surplus reached 0.6% of GDP, while

the overall balance surplus stood at 0.1% of GDP. For the trailing 12 months,

however, the overall balance inched into negative territory for the first time since

2024. While disciplined spending has offset softer government revenues in the first

six months of 2026, and we expect fiscal policy to continue the government’s

commitment to a zero balance throughout 2026, we note that the primary balance

through June seems to have missed the performance target established in the latest

review of the EFF Program with the IMF.