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Senate Sets Friday Vote on Milei’s 2026 Budget and ‘Fiscal Innocence’ Bill

Passage would give the government a formal framework to reassure lenders.

Overview

  • The chamber meets at noon with government allies forecasting enough support for general approval, though article-by-article votes could force changes and send the text back to Deputies.
  • Article 30 is the main flashpoint as it scraps statutory funding floors for education and science — including the 6% of GDP education floor, the science path to 1% of GDP by 2032, and the 0.2% for technical schools — drawing objections from UCR and Convicción Federal senators.
  • The draft also faces pushback over Article 12, which allows freezing transfers to universities over information disputes, adding to the risk of contested roll-call votes.
  • Budget projections include 5% GDP growth in 2026, roughly 10–10.4% annual inflation, an official dollar near $1,423 by December 2026, a fiscal surplus target near 1.5% of GDP, and a continued ban on Treasury financing from the Central Bank.
  • After Deputies preserved university and disability funds, OPC/Iaraf estimate inflexible spending rises by about 0.5–0.7% of GDP, while the separate ‘Fiscal Innocence’ bill would lift tax-evasion thresholds (to $100 million and $1,000 million), create a simplified income-tax filing, shorten audit windows by compliance level, and seek remonetization without changing AML or UIF powers.