Overview

• At the 2026 budget presentation, President Javier Milei said spending on pensions, health and education will rise despite his austerity drive.
• The shift follows a heavy loss for his La Libertad Avanza party in the Buenos Aires provincial election, a key test ahead of the national vote in October.
• Milei defended past spending cuts and cited lower inflation and fiscal improvement, while acknowledging many Argentinians have not felt gains in daily life.
• He still lacks a majority in both chambers of Congress, where lawmakers have repeatedly stalled his reform agenda.
• The plan targets fiscal balance with forecasts reported by Reuters of a 1.5% of GDP surplus in 2026, roughly 5% growth and inflation near 10% by end-2026, as the government continues market interventions to support a weak peso.