MercoPress. South Atlantic News Agency

Milei gets Congressional nod for 2026 Budget

“This is not just another law; it is a turning point for Argentina,” LLA Senator Patricia Bullrich stressed

President Javier Milei's La Libertad Avanza (LLA) scored a key parliamentary victory on Friday when the Senate passed by 46 to 25 votes and one abstention the 2026 Budget Bill, enshrining a “zero deficit” fiscal rule. The Upper House also endorsed the so called Fiscal Innocence Act, shielding private savings from state oversight.

LLA's win came with supporting votes from the Radical Civic Union (UCR), Propuesta Republicana (PRO), and many provincial blocs. Additionally, Peronist senators from Catamarca, Tucumán, and Jujuy broke ranks with Cristina Fernández de Kirchner's (CFK) leadership to support the government.

The budget sets ambitious macroeconomic goals designed to reassure international markets: GDP Growth 5%; Inflation 10.1% (year end projection); Exchange Rate AR$1,423 / US$1 by December 2026; Fiscal Balance: Primary surplus of 1.5% of GDP, financial surplus 0.2%. Furthermore, exports are expected to rise by 10.6%.

The fiercest debate centered on Article 30, dubbed the “Broom Article” by opponents. While LLA lawmakers argued that fiscal balance was non negotiable, the opposition warned that suspending mandatory funding floors for education, science, and defense hands discretionary power to the Executive, risking severe cuts to universities and research institutions. In the end, Article 30 was approved with 42 votes in favor, 28 against, and 2 abstentions.

The Fiscal Innocence Act was passed with 43 votes in favor and 26 against. The measure introduces a simple affidavit for assets up to AR$10 billion (around US$6.9 million). As per the new Act, taxpayers cannot be treated as criminals for using their savings. Therefore, the tax bureau ARCA will levy income tax only on invoiced earnings, without monitoring equity variations or consumption patterns within the threshold.

Friday's victory spares Milei from governing by decree, strengthening his institutional credibility. The budget's zero deficit mandate signals to international markets that Argentina is committed to fiscal discipline, while the Fiscal Innocence Law underscores the government’s libertarian stance on individual property rights, it was explained.

“This is not just another law; it is a turning point for Argentina,” LLA Senator Patricia Bullrich stressed. “We are voting for a country that lives within its means.”