The country's Treasury Secretariat released the data for January on Monday. While the figure for the month was nominally weaker than the ARS1.643 billion registered in January 2005, the prior year's data was distorted by a tax deferral program in which Argentina's spread their December income tax payments over the first four months of 2005.

Underneath the data, however, there are some trends that may be of some concern. Spending continues to rise at a faster pace than revenue, even as the government is vowing to maintain fiscal constraint to help prevent a current inflationary outburst from getting out control.

According to a statement from the Secretariat, total spending rose 26%, whereas revenue was up 24.7%, although the latter of those two would be higher if the 2005 deferred income tax payments were stripped out.

By way of explanation for the rapid expenditure growth, an official from the Economy Ministry highlighted the fact investment spending was very strong. Public capital expenditure came in at ARS1.186 billion for the month, up 72% from 2005, while operation and consumption spending was up a more modest 22% to ARS1.566 billion.

And yet as whole current expenditures were also up 26%, reaching ARS9.042 billion, bolstered by a 28% surge in transfers to the social security system. That increase was a result of an increase in minimum pensions announced last year.