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Governors Press for Negotiated 2026 Budget Before Labor and Tax Reforms

A budget review highlights higher discretionary aid alongside steep capital cuts that leave provincial pension shortfalls largely uncovered.

Overview

  • After meeting with President Javier Milei, provincial leaders say they will only support the next labor and tax packages if a 2026 budget is negotiated to include public-works guarantees and relief for 13 provincial pension deficits.
  • The Office of Budget analysis reports a near 50% nominal rise in non-automatic current transfers, including a 306% increase in ATN funds, while projecting a 44% nominal drop in capital transfers that would hit road projects in provincial agreements.
  • The draft assigns 122,763 million pesos to the 13 non-transferred pension funds, which governors say covers well under 10% of what ANSES should send annually, not counting past-due amounts.
  • Congress faces a procedural standoff as opposition blocs push for a committee ruling on Tuesday and passage before the ordinary session ends, while the governing coalition aims to delay at least the Senate vote until after the December 10 renewal.
  • Buenos Aires Governor Axel Kicillof will on Monday present and send his 2026 provincial budget to the legislature at the Salón Dorado, with allies signaling a package that could also include a fiscal law and debt authorization after repeated 2025 extensions.