The government has two sets of problems coming from the past, one external to it and the other internal, but both interconnected. The external problems include the vulnerable state of the economy which is on the mend by any objective standard. But the government is liable to face growing public disenchantment unless the benefits of development are more widely distributed. However, the last government’s negotiations with international creditors and the agreement with the IMF leave little room for the new government to manoeuvre. The reduction in the debt that was negotiated was around 20 percent overall, which is significantly less than obtained historically from similarly positioned countries. In 2020, Argentina restructured $65 billion in foreign bonds, securing a 50 percent reduction in debt payments over the next decade.
Among the important promises of the NPP government to the people has been to address the problem of corruption and waste. This was the centrepiece of the Aragalaya protests that brought down the government in 2022. The government made many other promises too when it was in the opposition. But unlike in the case of these other promises, such as to reduce the cost of living, the promise to reduce corruption and waste is within the power of the government to a greater extent than to bring down the cost of living which is determined by external factors more than by internal ones. The government has cut down on its costs considerably. Its celebrations of its electoral victory and swearing in of the new president and parliament was on a low key. The president took only a small delegation with him on his first official trip abroad to India.