The Argentine President, Javier Mileiannounced on Monday that the Budget bill for 2026 that stipulates that at the end of next year a fiscal surplus “or, in the worst case, a fiscal balance” will be reached at the National Congress. “
The president said that the project proposes a real increase in 5% pension party, while health spending and 8% in education will increase by 17%.
“The fiscal balance is the cornerstone of our government plan,” Milei said in a national chain transmission. “It is the definitive solution to the problems that have placed Argentina for decades,” he added without giving details of macroeconomic projections.
Since his arrival at the presidency in December 2023, Milei managed to drastically reduce inflation from more than 200% per year to 33% in August.
However, the popularity of his government has been affected For the strong adjustment of the expense, which shot uncertainty about the result of the mid -term elections that will be held in October.
Milei, which has a minority in both cameras of Congress, needs to win more benches to approve the economic reforms it drives.
The investment climate in the financial markets was tensed after the recent defeat suffered by the ruling in the provincial elections of the province of Buenos Aires, which fired a strong pressure on the exchange rate and an increase in the country risk.
Milei has ruled the first two years of its management without a budget law.
