The President Javier Milei signed the decree with the summons extraordinary sessions of Congress and confirmed that the list of topics will correspond to those already expected Budget 2026, labor reform and the project continues “Dollar mattress” to the priorities, but as a novelty it added the initiative it seeks They “protect” budget balance and prohibit laws that lead to deficits.
This is a project that was presented on the national network last September when the opposition was making progress and passing legislation in Congress to ensure funding for universities, children’s health (Garrahan Hospital) and disability services, all of which were rejected by the government on the grounds that they did not define where the resources would come from.
Milei presented this in this context Project “National Commitment to Financial and Monetary Stability”, the most striking point of which is the idea of introducing prison sentences for any official who promotes laws or resolutions that increase the expenditure provided for in the national budget without accrediting the resources to finance them.
However, between the loss of control over the parliamentary agenda that La Libertad Avanza suffered at the time and the tense election campaign, the project stalled in the Chamber of Deputies. Now that his parliamentary troops are reinforced, Milei is trying Reviving this debate in the extraordinary phase and in the middle of the consideration of the 2026 budget does not seem to be a coincidence.
What does the tax shield project that Javier Milei has included in the extraordinary agenda say?
The first chapter of the project sets out the “shield” character that the government wants to give to fiscal policy. Article 1 states that “the general budget of the state administration must provide for a balanced or surplus financial result” and that “the adoption of a general budget law that provides for a deficit financial result is prohibited.”
Next, an adjustment mechanism will be established for the Chief of Staff to determine “Necessary measures to restore this balance” if “in the implementation of the budget, there is a reduction in the planned appropriations or an increase in expenditure beyond the original estimates, jeopardizing compliance with the rule provided for in Article 1.”
“Decisions to adjust or reduce items will be made initially in relation to those for which no minimum execution amount is legally applicable, and only if these are insufficient can they be extended to other items in accordance with the provisions of the General Budget Law and applicable regulations,” the project adds.
In addition, it is noted that all expenses incurred by the national public sector “must be provided for and approved in the general budget lawwith the exception of those listed in Article 8, subsection b) of the Financial Management Law (24.156), that is, public companies and corporations with majority ownership by the State.
The rules Milei wants to set for Congress come right in the middle of the budget debate
The project also aims to establish a “Fiscal discipline” for Congresssomething that will undoubtedly lead to short circuits and debates about the separation of powers when the issue is debated in the commissions and the Chamber of Deputies.
One of the rules that proposes that “any law establishing or authorizing expenditure not provided for in the budget” comes into force “as soon as the corresponding items are expressly included in the general budget law of the following fiscal year.” The only exception will be laws that ensure their financing through the allocation of certain resources, but “without affecting the balanced or surplus financial result”.
It is also noted that any bill that “involves, incurs or alters expenditure of any kind” must be considered a “condition for its consideration in committees.” Medium-term budgetary impact report.
In addition, the government has also introduced self-regulation by stipulating that no civil servant may take on obligations that are not provided for in the budget law The executive branch “must refrain from demanding temporary advances from the central bank to finance primary expenditure.”
The proposed harsh penalties for legislators and officials and the “traps” for the BCRA
However, the strongest chapter of the project is the proposal to add an article to the Criminal Code that determines the punishment Prison from one to six years and absolute exclusion for twice the length of the sentence for the Official who “dictates, authorizes, authorizes, or executes.” Regulations or administrative acts that make changes or Increase in planned public spending in the budget” without the means for its financing being accredited.
The punishment is even harsher when it comes to the question of money. The project states: “The official of the Central Bank who orders, authorizes or carries out the issuance of legal tender in violation of the prohibitions and rules established in the institution’s charter shall be punished with imprisonment for a period of three to ten years and absolute disqualification for twice the duration of the sentence.”
With this, Milei wants to set a rigid cap on public spending, with the administration and Congress jointly responsible for ensuring that no law or measure brings with it the minimum value of the budget deficit, with the risk of prison sentences for officials, and an even stricter hurdle for the central bank.
The path of the extraordinary
He The decree calling extraordinary sessions of Congress will be published in the Official Gazette on Tuesday -first business day of next week- and sets a deadline ranging from December 10th to December 30th. However, both in Casa Rosada and in Congress agree that there will be another call for this second half of January and until February.
The list of topics as announced by the Chief of Staff, Manuel Adorni, It also contains the Budget 2026; the law of “Fiscal innocence”better known for the “Dollar Mattress Plan”; the project of “Work modernization”; the reform of criminal code and the “appropriateness” of the Glacier lawan issue raised by several governors.
Casa Rosada trusts that it will receive the necessary support from governors and their legislators for approval Part of the package before the end of the year. This goal – ambitious due to the interruption of the celebrations on December 24th and 25th – lies in the Budget, the law of “fiscal innocence” and possibly also the reform of Glacier, as expected iProfessional parliamentary sources of the ruling party.
If everything went as Milei’s troops expected and no unexpected obstacles arose in the debate, Lawmakers could approve the budget the week of Dec. 15 and immediately send it to the Senate, where they will aim to pass the bill by Dec. 30. Everything is temporary because time is short. One of the challenges, for example, will be the gathering of senators in the days before the New Year, when tickets to return to their provinces are in short supply.
In a race against time, the idea of the ruling party and its allies in the deputies is that, together with the budget, the project will be discussed that will give legal guarantees to savers so that they can withdraw the dollars saved “in the mattress”.
In this context Few in Congress believe the labor reform project, which includes greater flexibility in hiring and firing and changes to wages, vacation, overtime and compensation, can be sanctioned into law this year. Both the ruling party and the opposition point to February to add more depth to this debate.
The burden that the agenda already brings with it Javier Milei for the extraordinary sessions of Congress Now add the project you are looking for “shield” the budget balance. and to ban deficit-inducing legislation whose text does not predict a much simpler debate than that of the budget or labor reform.
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