MercoPress. South Atlantic News Agency

Milei outlines Budget Bill in broadcast message: “The worst is over”

He proposed spending increases on many items in a move to bounce back from his lacklustre momentum

In a recorded broadcast message, Argentine President Javier Milei outlined the 2026 Budget Bill sent to Congress, asserting that “the worst is over” for the country's economy.

Milei declared that fiscal balance was “non-negotiable,” calling it the only way to end Argentina's economic cycle of “disillusionment.” The bill includes “financing restrictions” to prevent the Central Bank from financing the Treasury, thereby stopping monetary issuance.

Despite his emphasis on austerity, the president announced budget increases for several key areas: Universities - AR$4.8 trillion; Pensions - 5% increase above inflation; Healthcare - 17% above inflation; Disability Allowances - 5% above inflation; and Education - 8% increase.

Milei also called on governors and lawmakers to work “side by side” with his government, stating that “Argentina's future depends on the people and politicians committing to fiscal order.”

With a primary fiscal surplus, Milei projected an annual growth of 5%, which could rise to 7-8% with additional reforms. He stated that this would be the first time in decades that a budget surplus would allow the public sector to finance private entrepreneurs undertaking infrastructure projects.

Milei's announcements sought to revamp the ruling La Libertad Avanza (LLA) from the electoral defeat in the province of Buenos Aires last Sunday, more than a month before the same midterm polls in other districts.

Later Monday, Milei flew to Paraguay for a state visit and to participate in the Conservative Political Action Conference (CPAC).