The president of Argentina, Javier Mileiannounced this Friday that it will prohibit financing public spending with monetary issuance, as a way to guarantee the fiscal surplus, after vetoing an increase to retirement and pensions due to disability approved by Congress.
It is a measure “to waller the zero deficit and the government policy” of the government, said the ultraliberal president in the national chain.
Milei achieved in 2024 the first surplus in the public accounts of Argentina since 2010 with a strong policy of austerity. It has also reduced the very high inflation, from 79.8% in the first half of 2024 to 15.1% in the same period of 2025.
“On Monday I will sign an instruction to the Ministry of Economy of the Nation to prohibit the Treasury to finance the primary expense with monetary issuance,” said Milei.
He Treasure “You will not be able to request money from the Central Bank to finance your expense,” he emphasized.
The president vetoed a Increased retirement and disability pensions. Congress can insist with the laws, but must gather two thirds of the votes in both cameras.
“My task is not good to do good, even if the cost is to say that I am cruel,” Milei said in his speech.
On Wednesday, the Milei government suffered another parliamentary attack when deputies gave half a sanction to laws that increase budgets of national universities, declare the emergence of the highly complex pediatric hospital with a chin and repealed decrees that modified different national institutes and organizations. The approval of the Senate is still missing.
Faced with this scenario, Milei also announced that he will send, without specifying when, a bill to “penalize the approval of national budgets incurred in fiscal deficit”, which will also sanction legislators and officials who “do not comply with these new fiscal rules.”
The Argentine president faces mid -term elections in October, in which he will seek to increase his minority parliamentary force, which has 39 deputies of 257 and 6 senators of his own plus an ally, of 72.
