Argentina's new budget for 2026: What does it mean for the country?

Last week Argentina’s upper house, the Senate, ratified the 2026 National Budget which was approved by the lower house, the Chamber of Deputies, a week before. This marks a major win for Milei’s administration by passing its first budget since entering into power in December of 2023 and a feat of negotiation and cooperation with allies and even some members of the opposition.

Economic Outlook

Firstly, the budget includes projections for the future economic situation in 2026, with an estimated growth of 5% in GDP, a financial surplus of 0,3%, a primary surplus of 1,2% and an annual inflation of 10,1%. It also marks a change in terms of earnings and losses of the government, since after many budgets with deficits (i.e the government spends more than what it earns), 2026’s is a balanced budget according to Milei’s administration. It also redistributes funding from some areas into others and it eliminates the 5% GDP minimum of budget for education, but the budget increases the spending in education from the previous one and the overall spending in the area is above the aforementioned minimum, it only eliminates it. The original version of the 2026 included a controversial part, chapter 75, which contemplated the derogation of the University Funding and Emergency in Disability laws, which increased funds for public universities and disabilities. This chapter did not make it into the final version of the budget as it was rejected by the lower house, thus maintaining the increased funds in those two areas.

Political Negotiations

Outside of the already mentioned Chapter 75, where even many of Milei’s parliamentary allies joined forces with the opposition to reject it, the budget enjoyed widespread political support across party lines. Its main supporters were La Libertad Avanza (Milei’s party and coalition) and its main centre and center-right allies in La Fuerza del Cambio (Force of Change, which the union of the PRO and UCR parliamentary groups, and also received the support of Provincias Unidas (United Provinces), which is political coalition and parliament bloc that was the third force in the October Midterms, as well as smaller provincial parties, particularly in the Senate where they enjoy a stronger presence.

The main opponents of the budget were the main peronist opposition bloc, Fuerza Patria, and some minor left wing parties. But due to the majority of parties and blocs being in support of the budget, either in its original form or with some modifications.

Impact on Transparency

Without a new budget, we weren’t able to know exactly where were government funds being directed into and by which departments were being used, but now that the budget’s been passed, citizens will be able to see exactly where their taxes are being spent, in which areas and with what objectives and purposes, thus helping towards transparency in the funds that the government allocates.