Argentina pivots from huge cuts to a public sector spending spree.

Live from the UK, this is the Marketplace Morning Report from the BBC World Service.

I'm Stuart Clarkson. Good morning.

Well, we'll start in Argentina where the country's president has announced plans to increase spending on pensions, health and education.

It comes after months and months of austerity.

In a TV address,

Javier Milley told his people the worst is over. Katie Silver's with us now on Marketplace. Good morning, Katie. Hi there. So just under two years now since he became president, it's been a

tough time, hasn't it? It has. There have been widespread cuts and indeed protests across the country at some of his austerity measures.

I mean, some are very positive when it comes to Malay. They say that he's been very beneficial for the economy.

He's seen inflation go down. It was triple digits. Now they're forecasting or hoping for just over 10% next year.

So in some ways, there are some people who are very supportive, but many are not.

So there have been widespread protests, particularly, for example, from the healthcare sector.

I have contacts and colleagues in Buenos Aires who have talked about, for example, the sheer

numbers of doctors that are taking to the streets, the huge cuts that that sexes have faced, along with

as well, for example, public sector workers. And of course, he came to office with that chainsaw

promising to drastically cut government spending. And that is something that we have seen well and

truly. So he's saying the worst is over, what's actually going to change? How might

affect people's lives daily? The Libertarian Party says now that it's still going to be pursuing a

solid fiscal program. So basically saying that by all accounts, they are going to guarantee a fiscal

balance. They call it a rule of fiscal stability and say that if there's any chance that they're going into fiscal deficit, they will cut spending again.

But for now, they say that they're going to guarantee a fiscal balance and hike funds, particularly when it comes to things like healthcare, education and pensions.

Three of the sectors that have been really cut during this time, the government said that they're going to allocate about 85% of the government budget to that in the coming year.

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