Milei sets out fiscal reforms amid Congress approval of social benefit budgets

Milei sets out fiscal reforms amid Congress approval of social benefit budgets

3 days ago

Argentinian President Javier Milei Criticizes Congress Over Budget Allocations

Argentinian President Javier Milei launched a sharp critique of Congress on Friday, denouncing the recent passage of multiple laws that modify the budget distribution established by his far-right administration, reports 24brussels.

During a nationwide broadcast, Milei introduced two key measures. He announced plans to sign a regulation that would “prohibit the Treasury from financing primary spending through monetary issuance” and disclosed intentions to send a bill to Parliament aimed at “penalizing the approval of budgets that include a fiscal deficit.”

The presidential address, recorded on Friday afternoon, is set against a backdrop of escalating tensions between the Executive Branch and opposition parties as they approach legislative elections. Last month, an opposition coalition, primarily comprising Peronists, successfully passed several significant measures, including increased funding for public universities, a declaration of pediatric emergency, and the repeal of decrees aimed at dismantling public agencies.

On July 10, Parliament approved an emergency law that mandated a “special” 7.2% increase in pensions.

Milei contended that these legislative measures threaten his government’s fiscal surplus agenda, warning that they would exacerbate the national debt if implemented. To reinforce his commitment to a “zero deficit,” a cornerstone of his administration since taking office, Milei stated he would implement regulations to prevent the Treasury from financing primary spending—a directive his government has adhered to from the start.

Furthermore, he pledged to introduce a bill that would impose “criminal penalties on legislators and officials who do not comply with these new fiscal rules.” He emphasized the gravity of financial decisions, stating, “Congress will need to think very carefully about where resources will come from to fund their initiatives.”

Since Milei assumed the presidency in December 2023, his ultra-liberal government has been forced to extend the existing national budget, lacking parliamentary support for new fiscal proposals. His latest address appears to serve a campaign purpose, as Argentina prepares for provincial and national elections between September and October to fill vacancies in Congress and local legislatures.

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