Argentina's Fiscal Tug-of-War: Milei’s Budget Sparks Political Showdown

President Javier Milei of Argentina introduced the 2025 budget to Congress, emphasizing the elimination of fiscal deficit and signaling a confrontational stance with lawmakers. Despite opposition, Milei remains committed to austerity, aiming for economic recovery amid deep financial distress. Controversy and political skirmishes continue to unfold surrounding his fiscal policies.

President Javier Milei of Argentina unveiled the 2025 budget to Congress, emphasizing his commitment to eradicating the country's chronic fiscal deficit. His unconventional move of personally pitching the budget, instead of delegating it to his economy minister, underscores his dedication to tight fiscal policies.

Milei's proposal has sparked a fresh wave of political confrontations. With less than 15% control in the legislature, Milei faces a tough battle against opposition parties advocating for increased salaries and pensions to alleviate severe economic hardship. Despite the pressure, Milei remains firm on his zero-deficit agenda.

The past nine months of Milei's administration have brought significant cuts in public spending, leading to economic pain for many Argentines. Despite these challenges, Milei's fiscal discipline has started to yield results, with a rare fiscal surplus and a notable reduction in monthly inflation. The path ahead remains fraught with tension as the government vies for Congressional approval of its budget plans.

(With inputs from agencies.)