Overview

• The Budget and Finance Commission held its first session, chaired by José Luis Espert, to set the work plan and begin formal analysis of the 2026 spending bill.
• Officials plan to convene hearings with key areas before pushing for a committee ruling, with the government signaling it prefers a floor vote after the December legislative turnover.
• The draft centers on fiscal balance, tax reductions and state reform, projecting 5% annual GDP growth, 10.1% inflation and a year‑end exchange rate of 1,423 pesos, while claiming 85% of spending will go to education, health and pensions.
• Contested provisions include removing the 6% of GDP education floor, ending automatic AUH updates and a proposed fiscal ‘shield’ with a fiscal rule plus Penal Code and parliamentary discipline changes.
• To ease tensions with governors, the plan boosts ATN transfers by more than 140% and raises infrastructure outlays, as opposition lawmakers move to summon Economy Minister Luis Caputo during a week that also features President Javier Milei’s U.S. trip and scrutiny of any new external financing.