He Governmentled by President Javier Milei, has decided to extend the 2023 Budget to 2025, after the collapse of negotiations in Congress. This measure, made official through Decree 1131/2024, has generated an intense debate in the political and economic sphere of the country.
The extension of the 2023 Budget is due to the lack of consensus of the Government in Congress to approve a new budget for the year 2025. Despite the efforts of the Executive to negotiate with the opposition and the governors, an agreement was not reached before the close of the ordinary sessions.
This is the second time that the management of Milei extends the current budget plan, since the 2023 budget was also extended to 2024. Decree 1131/2024 establishes that, as of January 1, 2025, the provisions of the General Budget Law of the National Administration for the 2023 financial year will govern, with the necessary adjustments to adjust to the specific demands of 2025..
The decree instructs the Chief of Staff, Guillermo Francos, to make the necessary budget modifications during the next year, within the framework of the Financial Administration Law No. 24,156.
The decision to extend the budget has generated various reactions in the political sphere. Some sectors of the ruling party have defended the measure, arguing that it is necessary to guarantee the operation of the State and the continuity of essential services.
However, the opposition has harshly criticized the extension, pointing out that it undermines transparency and makes it difficult to find agreements with international organizations such as the International Monetary Fund (IMF).
Impact
The extension of the budget has important implications for the Argentine economy. The initial 2023 budget, which amounted to $40.2 billion, was expanded during 2024 by presidential decrees until reaching $95.9 billion, an increase of 138.4% due to the high inflation of the first months.
The continuity of this budget implies that the Government will have a margin of discretion of around $20 billion, which could generate uncertainty in the financial markets. The Government of Javier Milei faces several challenges to consolidate the country’s economic recovery.
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