President Javier Milei’s administration achieved a significant milestone in Argentina’s Senate on Friday, as the upper chamber endorsed his 2026 Budget bill in principle. In a recent session, senators cast their votes with 46 in favor and 25 opposed to support the proposal, alongside one abstention, following an extensive eight-hour debate. The upper house is set to proceed with a vote on the bill in an article-by-article manner. The approved Budget bill anticipates an inflation rate of 10.1 percent and a GDP growth of five percent for the upcoming year, while reaffirming the objective of attaining fiscal balance. Milei failed to secure the passage of a Budget bill during his initial two years in office, necessitating reliance on legislation enacted by former president Alberto Fernandez. He has successfully achieved this after voters provided him with a more robust legislative mandate in the midterm elections of last October.
The ruling La Libertad Avanza party received backing from the majority of the so-called “pro-dialogue” caucuses, which included the Unión Cívica Radical, PRO, a minor faction of Peronists associated with the Convicción Federal caucus, and several senators perceived as loyal to provincial governors. Senator Patricia Bullrich stated during the debate that “zero deficit is non-negotiable: it is the red line separating the future from disaster.” “We will not exceed our revenue. We are going to put our accounts in order,” stated Ezequiel Atauche.
Senators also sanctioned a contentious provision that eliminates minimum funding thresholds for education, science, and defense. It additionally implements more stringent administrative prerequisites for universities seeking to obtain fund transfers. The principal opposition Peronist faction, under the leadership of José Mayans, cast a unanimous vote in opposition to the bill, which had secured approval from the lower house Chamber of Deputies in the previous week. “When you go to bed tonight, tell your children ‘I’m happy because I blew up the education system’,” Mayans stated. He also expressed disapproval of the “fast-track handling” of the Budget, asserting that it “is completely outdated” and “represents the decay and corruption of the government.” Bullrich provided a defense of Milei’s administration. “We are not adjusting at the expense of those who have the least. We are installing freedom,” she stated.
With the support of his bolstered parliamentary majority, Milei aims to implement significant reforms during the latter half of his term. The discussion surrounding one of the most contentious issues, labour reform, which has incited union resistance and public demonstrations, has been deferred until February. The government is indicating that tax and pension reforms are set to be introduced in the upcoming months. “Fasten your seatbelts because there will be many more reforms,” Milei remarked recently.