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Senate Passes Milei’s 2026 Budget, Clearing Contentious Education Cuts

Cross‑party votes secured the first formal spending plan of this presidency, a message to creditors and markets.

Overview

  • The budget became law after a 46–25–1 vote in general and a separate approval of the disputed Chapter II, with article 30 passing 42–28 with two abstentions.
  • Article 30 repeals legal funding floors such as the 6% of GDP for education, the science and technology path toward 1% of GDP by 2032, and the 0.2% allocation for technical education; article 12 empowers the Education area to interrupt transfers to universities that fail to provide required information.
  • Lawmakers also approved the Inocencia Fiscal package 43–26, raising tax‑crime thresholds, shortening certain fiscal prescription periods, and creating a simplified income‑tax regime intended to ease regularization of undeclared assets.
  • Support came from La Libertad Avanza with backing from PRO, sectors of the UCR, provincial blocs, and several dialoguista peronists, following intensive lobbying led by Patricia Bullrich and Interior Minister Diego Santilli that exposed fractures in Peronism.
  • The plan projects 2026 GDP growth of 5%, annual inflation of 10.1%, an official dollar of $1,423 in December, and primary and financial surpluses of 1.5% and 0.2% of GDP, figures critics question as universities and provinces prepare to contest education and transfer provisions.