Argentina Modifies National Budget to Address Emergency Needs

The Argentine government has modified the national budget to better allocate funds for education, security, and health amidst an economic emergency. The changes include addressing debts, ensuring essential services, and supporting social mobility.


Argentina Modifies National Budget to Address Emergency Needs

The Government made the first budget modification of the year at the national level, redistributing funds to strengthen education, security, and health through Decree of Necessity and Urgency (DNU) 186/2025 published in the Official Gazette. This measure is framed within the public emergency declared until December 2025 and aims to ensure a reasonable distribution of resources to meet state obligations.

In the context of the emergency, the need to allocate additional resources to specific areas was highlighted, warning that without this modification, the provision of essential services provided by the National State would be at risk. The DNU also included a special regime to regularize debts in the electric sector, credits for energy distributors, and the possibility for the Nation to settle obligations with provinces through the transfer of state assets.

Regarding education, the automatic distribution of funds to provinces and municipalities was restored, underscoring the importance of allocating sufficient resources to guarantee citizens' rights and upward social mobility. Additionally, the payment of contributions to international organizations such as IFAD and IDB for specific amounts was approved.

Regarding the areas involved in the budget modification:

- The Chief of the Cabinet of Ministers adjusted the budget to cover expenses related to the elimination of the PASO and the development of elections at the national level.

- The National Security Ministry reinforced the budget for the supervision service of processed and/or convicted persons.

- The Energy Secretariat adjusted the budget by decreasing credits to CAMMESA and increasing transfers to ENARSA for a specific project.

- The National Superintendency of Insurance increased allocations to address a judicial seizure.

- The Ministry of Health and the National Disability Agency received budget reinforcements to guarantee their normal functioning and to conduct audits of non-contributory pensions.

- In the Mint, budget credits were adjusted during its intervention.

- Finally, the Ministry of Defense established participation percentages for covering military retirement and pension expenses.