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Senate Passes Milei’s 2026 Budget, Securing First Full Spending Plan of His Term

The vote hands the government a credibility signal on fiscal balance that departs from longstanding protections for education and science.

Overview

  • The bill became law with a 46–25 vote and one abstention after a chapter-by-chapter strategy limited changes and kept the text from returning to the lower house.
  • Senators approved the most contested items: Article 30 removes legal minimum funding floors for education, science and technology, technical education and defense, and Article 12 adds reporting rules that can condition transfers to national universities.
  • Chapter II, which contained Articles 12 and 30, passed 42–28 with two abstentions, as three Convicción Federal senators (Guillermo Andrada, Sandra Mendoza, Carolina Moisés) backed the government and Alejandra Vigo abstained.
  • The plan projects roughly 5% GDP growth, 10.1% annual inflation, an official exchange rate of 1,423 pesos in December 2026, and a primary surplus target around 1–1.5% of GDP.
  • Passage followed frenetic talks led by Patricia Bullrich, Interior Minister Diego Santilli and Treasury Secretary Carlos Guberman, with the administration framing the result as a market and IMF signal as provinces and universities weigh next steps.