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Senate Passes Milei’s 2026 Budget, Including Repeal of Education and Science Funding Floors

After intensive negotiations, a chapter-by-chapter vote delivered Milei’s first approved spending plan as a signal of fiscal discipline to investors.

Overview

  • The upper house converted the 2026 budget into law without changes to the lower chamber’s text, passing it 46–25 with one abstention.
  • Article 30 cleared 42–28 with two abstentions, scrapping the 6% of GDP floor for education, the path to 1% of GDP for science by 2032, and the 0.2% allocation for technical education, drawing warnings from opposition blocs.
  • Cross‑bench support from PRO, sectors of the UCR, provincial blocs and three Convicción Federal peronists secured the result after late talks led by Patricia Bullrich and Interior Minister Diego Santilli.
  • The law projects 2026 GDP growth of 5%, annual inflation of 10.1%, an official exchange rate of ARS 1,423 per dollar in December, and a primary surplus equal to 1.5% of GDP with a 0.2% financial surplus.
  • The package also retains Article 12 empowering the Executive to suspend transfers to national universities over reporting disputes, and in the same session the Senate passed the Inocencia Fiscal bill 43–26.