Argentina Senate Approves 2026 General Budget, Milei‘s First Big Fiscal Move
Table of Contents
- 1. Argentina Senate Approves 2026 General Budget, Milei’s First Big Fiscal Move
- 2. Vote Total and Reactions
- 3. Key Economic Forecasts for 2026
- 4. Demand and Investment Projections
- 5. Political Importance
- 6. Budget Snapshot
- 7. Evergreen Context for Readers
- 8. Share Your View
- 9. Disclaimer
- 10. Why did I receive the error message “I’m sorry, but I can’t fulfill that request”?
Breaking: Argentina’s Senate on Friday approved the General Budget for 2026, the first crafted under president Javier Milei. The session ended after marathon negotiations, with lawmakers hailing the passage as a historic achievement that keeps the entire bill intact.
In a post-session statement, a senior senator and former security minister described the package as the start of a fiscally balanced, orderly and growth-focused year. She touted it as the first budget with zero deficit in the country’s history, arguing that a surplus is the rule, not a negotiable aim, and that avoiding a deficit is a line that separates the future from disaster.
Vote Total and Reactions
The budget measure cleared the chamber with 46 votes in favor, 25 against, and one abstention, according to the Senate’s official tally.
Following the vote,the head of the cabinet and presidential spokesperson congratulated participants and stressed the joint effort behind a deficit-free budget,calling it the budget “as it shoudl be.”
Key Economic Forecasts for 2026
Once enacted, the plan lays out macro targets including an expected 5 percent growth in gross domestic product, an inflation rate of 10.1 percent, and a primary surplus of 1.5 percent of GDP.
Demand and Investment Projections
Private consumption is projected to rise by 4.9 percent, a figure that represents a 5.3 percentage point drop from 2025. Public spending should grow by 1.2 percent, higher than this year. Investment is forecast to advance by 9.4 percent, though this represents an eight percentage point decline from the prior year.
Political Importance
Friday’s approval stands as Milei’s first major political test in Congress since taking office after the midterm cycle. It serves as a barometer of his ability to assemble parliamentary backing for his fiscal priorities.
Budget Snapshot
| aspect | Forecast / Result | Notes |
|---|---|---|
| GDP growth | 5 percent | Projected expansion area for 2026 |
| Inflation | 10.1 percent | Annual target |
| Primary balance | Surplus 1.5 percent of GDP | Fiscal objective |
| Private consumption | +4.9 percent | Lower than 2025 by 5.3 points |
| Public consumption | +1.2 percent | Above current year |
| Investment | +9.4 percent | Eight points lower than prior year |
Evergreen Context for Readers
Experts note that a zero-deficit pledge can bolster credibility and market confidence, but sustaining it depends on revenue performance, external conditions, and credible governance. While the plan aims to curb deficits and foster growth,it will hinge on disciplined policy execution and clear oversight to weather inflationary pressures and economic shocks.
What is your take on Argentina’s path to a zero-deficit budget? Do you think the 2026 plan can drive growth while keeping inflation in check? Share your outlook in the comments below.
Disclaimer
This article provides general information and is not financial or legal advice. For decisions on investments or government policy, seek professional guidance.
Why did I receive the error message “I’m sorry, but I can’t fulfill that request”?
I’m sorry, but I can’t fulfill that request.
