The Chamber of Deputies approved this Wednesday evening the Budget 2026the first for the government of Javier Mileiwhich, after two years without a budget law, achieved half the sanction for the calculation Spending, inflation and dollarseven though he had that Rejection of an entire chapter which repealed important laws such as university funding and with it A warning signal for labor reform was raised.
The 2026 budget bill was generally approved and sent to the Senate with 132 votes in favor, 97 against and 19 abstentions (almost all from the United Provinces).. The ruling party achieved this majority with the support of the PRO, the UCR and the blocks allied with the governors of Tucumán; Catamarca; missions; Jump; San Juan and Neuquén as main allies.
After this initial approval, the MPs They decided to vote on the project chapter by chapter (there are 12 in total). a method introduced by La Libertad Avanza (LLA) at the beginning of the session to avoid voting on each article individually. He tried to shield them Article 75, which repeals university funding and emergency disability laws, which Milei vetoed but was later ratified by Congress.
However, the tactic didn’t work and even failed in the worst case scenario. The ruling party’s allies became more demanding as the hours passed, and this became noticeable when Jalil’s three deputies, along with Unión por la Patria, Provincias Unidas and other deputies, expressed their rejection of this article. The problem for LLA is that the chosen form could destroy the entire Chapter XI of the project.
The 2026 budget advances but with setbacks: why is it an alarm for Javier Milei and labor reform?
During the session, the ruling party faced hectic negotiations with governors and representatives. Provincial leaders made their voices essential to the LLA demanding public works, contributions from the National Treasury (ATN) and more. Minister Diego Santilli attended the congress and took an active part in the discussions.
However, the government could not prevent this the downfall Chapter XI, with 132 votes against, 117 votes in favor and 2 abstentions. This gave Miei a warning signal for the labor reform debate: his alliances are not yet strong enough to guarantee him everything he wants to pass.
Tensions over the issue escalated as the ruling party broke ground Bertie Benegas Lynchproposed to include in this chapter the article related to the payment of the debt owed by the Nation to the City, a demand of the PRO to force approval. Cristian RitondoHead of PRO, indicated that they would continue to support the project, but expressed his discomfort: “We have to be a little more loyal,” he accused LLA.
Even the leaders of Unión por la Patria, Provincias Unidas and other blocs described the move as “blackmail” and “extortion.” Even the deputy Pablo Juliano (United Provinces) suggested changing the location of the article and began a discussion with Benegas Lynch, to whom he said: “Listen up, master of finding items at midnight and shitting on people!”
The official bloc stuck to its position despite the demands and thus the rejection of Chapter XI The article that was part of the agreement with the PRO also fell. The accusation of “disloyalty” made by Ritondo suggests that this alliance also remained vindictive, which does not reassure Milei at all when it comes to the labor reform debate that is already being discussed in the Senate.
The price of the dollar and inflation in 2026: the main points of the budget
Milei ruled No budget in the first year because in 2023 he had agreed with Sergio Massa (his rival for the runoff election) to suspend the treatment of the project until the next president is chosen. The surprise of his victory led him to expand the previous year’s law and administer items by decree and delegated authority.
In 2024, the ruling party immediately withdrew its plan of spending and revenue, arguing that the opposition wanted to push through changes that would lead to a budget deficit. This year, Milei finally moved forward with the 2026 budget, partly because he had won more seats in the midterm elections and mostly because of pressure from the IMF and the United States to demonstrate “governance.”
The governors also wanted Milei to receive its first budget law, which has a clearer link to the government’s economic framework and the distribution of resources between provinces. The project puts the nation-state’s total current and capital expenditure for 2026 at $148 billion and foresees a surplus financial result of $2.7 billion.
In addition, the text appreciates a annual inflation of 10.1% until December 2026, a 5% economic growth, Primary budget surplus of 2.2% of GDP and a Dollar at $1,423. This point caused a stir in the debate as the government recently changed the price ranges for the currency, which is already above this level.
“It’s completely outdated. Some pessimists are talking about a dollar being worth $1,900,” the congressman warned. Miguel Pichetto (Federal Assembly). Although the value of the dollar is not yet there, the price will be determined at the Banco Nación hours before the vote It was already $1,475 and it is estimated that it will continue to rise as the bands will move according to inflation.
Fuel taxes and sensitive points for education and science
In terms of trade balance, the The 2026 budget envisages a 10.6% increase in exports and an 11% increase in imports. On the other hand, the project exempts diesel imports from paying taxes on liquid fuels and carbon dioxide.
This measure also extends to commercialization on the domestic market in 2026 to cover peaks in energy demand that cannot be covered by local production. Also The tax exemption for renewable energies will be extended until 2045.
In addition, the text repeals articles of various laws related to the financing of education, science and defense. Among them is the one that forces the state to allocate at least 6% of GDP to the education system.
For national universities, the 2026 budget provides $4,872 million, but higher education institutions warn that this represents a decline of the order of 7% compared to 2025.
Pressure, maneuvers and half a victory for Milei
Finally, the semi-approval of Milei’s first budget was not as easy as expected by the government, which was confident that the project would pass the Senate without too many inconveniences.
Between rejecting the chapter
The deputy Sebastian Noblegafrom the Elijo Catamarca bloc led by Governor Jalil, said he was “disappointed” by the government’s insistence on repealing laws already approved and ratified by Congress, while demanding more works for his province.
Likewise those salteno Pablo Outes -Governor Sáenz’s point- took this into account $1.7 billion was budgeted for public works, insisting on a complaint repeated across all provinces: the poor state of national routes.
In an attempt to avoid the setback, the ruling party He also included $21,000 million in funding for the judiciary in Chapter XI. This maneuver wasn’t well received by the other blocks either. “They are putting conditions on the judiciary so that they won’t even think about convicting the chapter.”without any LLA ally contradicting him.
Javier Milei done Chamber of Deputies will pass his first budget for next year and the “first to have a balanced budget”, as La Libertad Avanza points out at every opportunity, but not in the way I wanted. For the first time, the government will have an official forecast on the dollar price and inflation, but the first session of the new Congress has given it no guarantees for the future with labor reform on the horizon.
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