Milei's government calculated that USD 4.412 billion was saved by cutting 'ñoquis'

The Government of Javier Milei estimated that in 2024 it achieved a savings of approximately 4.412 billion dollars, which is equivalent to USD 367 million monthly, due to the reduction of 37,595 positions in the national public sector.

This adjustment directly affected the “ñoquis” in the National Public Administration, considered by many as one of the areas that had increased its workforce the most in the last decade.

These data come from a report prepared by the Ministry of Deregulation and State Transformation, led by Federico Sturzenegger, where it is emphasized that the cuts will continue and could deepen throughout the year.

"Breaking down the data, the declines in the National Public Administration (APN) and state-owned companies stand out. In this period, the APN reduced its staff by 10.8%, while in state-owned companies the decrease reached 13.6%," they pointed out from the ministry.

It should be noted that this reduction was carried out in the public employment at the national level, while most of the state personnel are in provinces and municipalities.

Reduction of public employment

According to data from the Argentine Integrated Pension System (SIPA), in November 2024 the total number of public employees, including provincial and municipal administrations, amounted to 3,420,000 people.

However, since the beginning of the libertarian administration, this number decreased by 1.45%, representing a reduction of 50,000 positions and a change in the trend of recent years.

According to the technicians of Sturzenegger's ministry, in the first year of Milei's administration there was a decline in the various forms of hiring within the public sector. Regarding permanent and temporary staff, the reduction was 4.8%.

Meanwhile, state employees under the Framework Law (Law 25.164) and those with LOYS contracts (self-employed regulated by decree 1109/17) recorded cuts of 18.3% and 54.9%, respectively, according to the technical report.

"Between December 2023 and December 2024, the reduction in APN sector staff caused a total long-term savings of US$4412 million. This is equivalent to an average long-term monthly savings of approximately US$367 million," they indicated from the Ministry of Deregulation and State Transformation.

It was detailed that the largest cut occurred in contracts under the Framework Law, with a savings of USD 2.118 billion. Regarding the permanent and temporary staff modality, the total savings were USD 1.533 billion, while in LOYS contracts it reached USD 761 million.

In parallel, Sturzenegger is advancing in a restructuring plan that contemplates the elimination, reduction, or merger of about 60 public agencies.