Javier Milei Presents 2026 Budget: 'The Worst Is Over' with Fiscal Balance

2026 Budget Presentation

• 🎯 President Javier Milei submitted the 2026 National Budget project to Congress, as mandated by the National Constitution.
• 🔑 The budget's core principle, like the previous year's, is fiscal balance, which is presented as a non-negotiable cornerstone of the government's plan.
• ✅ Achieving fiscal equilibrium is deemed essential for unimaginable growth after decades of stagnation and to avoid uncontrolled inflation.

Economic Strategy and Past Failures

• 💡 The President affirmed that "the worst is over," attributing this to the government's plan to correct decades of economic disarray.
• ⚠️ Past attempts to finance deficits through monetary emission or debt led to uncontrolled inflation, stagnation, and serial defaults, making Argentina a "laboratory" for failed economic theories.
• 🧠 The government rejects the "magical thinking" of stimulating consumption through deficit spending, which has historically resulted in economic decline.

Pillars of the New Economic Model

• 🚀 The only path for Argentina's definitive recovery involves fiscal balance, monetary order, and exchange rate order.
• 📈 A direct relationship exists between fiscal order, lower country risk, economic growth, and prosperity.
• 📊 This budget aims for a primary surplus, with Argentina achieving a fiscal surplus or equilibrium by year-end, a situation not seen without default in over 120 years.

Budgetary Commitments and Allocations

• 📉 The budget features the lowest national spending relative to GDP in the last 30 years, even below provincial spending levels.
• 🚫 It includes financing restrictions to prevent the Treasury from borrowing from the Central Bank, thereby avoiding monetary emission and inflationary spirals.
• 💰 Significant allocations include 4.8 trillion pesos for national universities, and increases above inflation for pensions (5%), health (17%), education (8%), and disability pensions (5%).

Vision for Future Growth and Prosperity

• 🌱 Maintaining fiscal balance is projected to achieve a 5% annual growth rate, potentially reaching 7-8% with further reforms, leading to high-income status within decades.
• 🤝 The primary surplus will enable the public sector to finance the private sector for fundamental infrastructure and logistics projects, a reversal from past decades.
• 🔥 Argentina must abandon economic self-sabotage, embrace effort, and create conditions for businesses to prosper by protecting property rights and reducing interest rates.