MercoPress. South Atlantic News Agency

Milei government cuts nearly 1.79 billion dollar from budget with sharp education adjustment

The politically most sensitive cut affects the Education Secretariat, with a reduction of 78.7 billion pesos (around 56 million dollars)

The government of Javier Milei amended Argentina's 2026 budget on Monday with a cut of nearly 2.5 trillion pesos (around 1.79 billion dollars at the parallel exchange rate) —equivalent to approximately 1.6% of the total— in an administrative decision that deepens the adjustment effort to sustain the fiscal surplus target agreed with the International Monetary Fund. The measure, signed by Chief of Staff Manuel Adorni and Economy Minister Luis Caputo, comes one day before the fourth Federal University March, called for Tuesday with its main event in Plaza de Mayo.

The largest component of the adjustment falls on Treasury transfers earmarked for economic services, with a reduction of 1.47 trillion pesos (around 1.05 billion dollars) linked to subsidy cuts and the increase of public utility tariffs. Smaller cuts follow: 359 billion pesos (around 256 million dollars) in energy-efficiency programs, 320 billion pesos (around 229 million dollars) in sports infrastructure, and additional reductions in road works, cancer prevention, and social programs. In parallel, the decision reinforces appropriations of 500 billion pesos (around 357 million dollars) to cover judicial rulings on pensions and 162 billion pesos (around 116 million dollars) to fund a voluntary retirement plan at the National Social Security Administration.

The politically most sensitive cut affects the Education Secretariat, with a reduction of 78.7 billion pesos (around 56 million dollars). The National Literacy Plan loses 35.3 billion pesos (around 25 million dollars), mostly in transfers to the provinces; the Teacher Salary Compensation Fund is eliminated, with a loss of 8.9 billion pesos (around 6.4 million dollars); school infrastructure and equipment are trimmed by 21.7 billion pesos (around 15.5 million dollars). The state-owned firm Educ.ar loses transfers worth 48 billion pesos (around 34 million dollars).

National universities are also affected, with a reduction of 5.3 billion pesos (around 3.8 million dollars) in capital transfers for works at thirteen institutions. The most affected are the National University of La Plata (1.04 billion pesos, around 745,000 dollars), General San Martín and Avellaneda (700 million pesos each, around 500,000 dollars), Río Cuarto (680 million pesos, around 486,000 dollars), and Entre Ríos (540 million pesos, around 386,000 dollars).

The measure arrives amid an ongoing dispute over the University Financing Law, approved by Congress in October 2025 and currently suspended by the Federal Administrative Appeals Chamber following a government appeal. The National Interuniversity Council, the main organizer of the march, says transfers to universities fell by 45.6% in real terms between 2023 and 2026 and that sector salaries lost 32% of their purchasing power over the same period. University of Buenos Aires rector Ricardo Gelpi described the situation as “hyperacute” and warned of an exodus of teachers and researchers. Tuesday's mobilization will be the fourth major university protest since the start of the libertarian administration and will be replicated in major cities across the country.