In fifth place would be capital transfers to the provinces and Buenos Aires City, amounting to 4 trillion pesos. Meanwhile, the increase in the only expense that would rise, the Universal Child Allowance (AUH), would be 2.7 trillion pesos.
According to analysts, the restructuring of the AUH, along with lower inflation and the creation of informal jobs, explains why poverty fell to 27.5% in the third quarter of the year, according to official data.
Thus, in two years, primary spending was reduced from 185 to 134 trillion pesos. The largest cuts were applied to funds transferred by the Nation to the governors, while capital transfers to provinces fell by 93.8%, an unprecedented adjustment.
Meanwhile, subsidies to other functions fell by 83.9%, and direct real investment retreated by 73.5%. Additionally, within the framework of a strong state adjustment, salary spending decreased by 26%.
Regarding PAMI (the national social security institute), spending remained stable, while spending on the Universal Allowance for Social Protection rose 70% in real terms—that is, discounting the effect of inflation—becoming the only item with an increase.
The largest cut was in social programs, which includes the bonus given to retirees and pensioners, among others, with a decrease of 10.5 trillion pesos in November 2025 currency, followed by energy subsidies at 8.8 trillion pesos and direct real investment at 8.3 trillion pesos.
Salary spending had a decrease of 6.3 trillion pesos.
Buenos Aires, December 22 (NA) — "I will adjust the budget items to achieve a zero deficit," announced President Javier Milei, after accepting that he will not veto the 2026 Budget, which was already approved in the Chamber of Deputies with the elimination of the repeal of University Financing and the Disability Emergency.
In this way, the head of state plans to continue applying cuts, after in his first two years in office he reduced public spending by about 50 trillion pesos, according to a calculation by the Applied Economic Policy Institute (IARAF) accessed by the Argentine News Agency.
Such a level of cuts is equivalent to US$8 billion at constant prices. IARAF estimated that Milei reduced spending levels by 27.2%.
