The first budget of Javier Milei's government, which seeks approval this Wednesday from the La Libertad Avanza (LLA) coalition and its allies, envisions a 5% increase in GDP, a 1.5% GDP surplus, and allocates 85% of its resources to social spending. A significant data point added this Wednesday is the repeal of the disability and National Universities laws, which were passed by Congress, vetoed by the government, and later ratified by Parliament.
The government is assured of its approval as it has the backing of LLA, Fuerza del Cambio, Innovación Federal, Producción y Trabajo, Independencia, and Elijo Catamarca, while only Unión por la Patria and the left are opposed, as Provincias Unidas decided to abstain, according to the Argentine News Agency.
The main points of the budget project are as follows:
- Annual inflation of 10.4% and 14% interannual for 2026.
- A surplus of 1.5% of GDP.
- Economic growth of 5%.
- Dollar exchange rate of 1423 by December 2026.
- Resources of 148.2 trillion pesos.
- Total expenditure of 148 trillion pesos.
- Primary surplus of 2.7 trillion pesos.
- Disability and university laws are repealed.
- 85% of resources are allocated to social spending.
- 65.7 trillion pesos will be allocated for pension payments.
- 4.8 trillion pesos are allocated to National Universities.
- It includes a quarterly update of disability benefits based on inflation.
- Universal Child Allowance, Pregnancy Allowance, and Family Allowances will not be automatically adjusted for inflation, but by resolution of the PEN.
- It prevents the National Treasury from financing itself with the Central Bank.
- Private consumption is estimated to increase by 4.9%.
- Public consumption will increase by 4.5%.
- Investments will increase by 9.4%.
- Exports are estimated to increase by 10.6%.
- Imports are projected to increase by 11.1%.
- The Cold Zones Law will only be maintained for the Patagonian region and Mendoza regions, and the extension to other zones voted in 2021 is cancelled.
