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Argentina Defends 2026 Budget, Keeps FX Bands and Privatization Drive

Final approval is expected after the December renewal.

Overview

  • Officials set 2026 targets of 5% GDP growth, 10.1% inflation and ARS 1,423 per US dollar, reaffirmed a primary-surplus path, and dismissed the IMF’s more pessimistic outlook.
  • The government confirmed no change to the exchange-rate band regime, describing a float within bands and pointing to stability after the electoral outcome.
  • Plans include bringing private capital into state firms such as Nucleoeléctrica and AySA while retaining state control, alongside promotion of the RIGI, which officials say carries zero tax expenditure.
  • Pensions will adjust by the inflation-based formula and the additional bonus remains a discretionary decision of the Executive, with selected social programs flagged for adjustments.
  • Fuel taxes will be “normalized” as a fixed sum rising by roughly 1% of the pump price each month, and legislators indicated the budget vote will likely occur after December following talks with governors.