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Argentina's Senate Approves Milei's First 2026 Budget After Chapter Votes

The passage aims to reassure markets about fiscal discipline, unlocking near‑term debt operations.

Overview

  • The upper house passed the budget 46–25 with 1 abstention, delivering Javier Milei his first budget law after two years of extended appropriations.
  • Senators validated voting by chapters and approved the contentious Chapter II 42–28 with two abstentions, removing statutory funding floors for education, science, technical education and defense.
  • The law retains Article 12, which empowers the government to suspend transfers to national universities if required reporting is deemed insufficient.
  • Crossbench deals proved decisive as three Convicción Federal senators backed the government, while parts of the UCR supported the budget in general but rejected Chapter II.
  • The plan projects 2026 GDP growth of about 5%, 10.1% annual inflation, an official exchange rate near 1,423 pesos in December and total spending of roughly 148 trillion pesos.