Argentina Approves Ambitious 2026 Budget Amid Economic Challenges

Argentina's Congress approved the 2026 budget, marking the first legislative endorsement since President Javier Milei took office. The budget envisions economic growth, reduced inflation, and a budget surplus, although previous financial strains and controversial austerity measures have sparked protests. Milei's party aims for significant reforms with its strengthened legislative presence.

Argentina's Congress has approved the nation's 2026 budget, a major milestone as it marks the first such approval since President Javier Milei assumed office in late 2023.

The approved budget, which passed with a vote tally of 46-25 and one abstention, outlines expenditures of 148 trillion pesos ($102 billion). It anticipates a 5% economic growth rate and inflation at 10.1%, with a primary budget surplus equal to 1.2% of GDP. Previous years saw economists grappling with inflation that soared to 300% annually by April 2024.

The Civil Association for Equality and Justice, a Buenos Aires-based think tank, notes a 7% increase in real terms from 2025, but a notable 24.6% decline from the 2023 benchmark. While public outcry against Milei's austere measures continues, his party, having bolstered its legislative influence, seeks comprehensive labor and tax reforms in the turbulent economic landscape.

(With inputs from agencies.)