Impact of the 2026 Budget on social spending
In a new national broadcast, President Javier Milei outlined the main guidelines of the 2026 Budget . The message, which lasted approximately 15 minutes, included announcements of increases in key areas such as health, education, retirement, and disability pensions. He also reaffirmed that fiscal balance will continue to be the cornerstone of his economic model.
"The worst is over," the president asserted, in an attempt to convey optimism after months of adjustment. The speech sought to consolidate the official narrative that fiscal order is the only way out of the stagnation and regain market confidence.
Increases planned in the 2026 Budget
As announced, the budget includes a 5% increase in pensions, a 17% increase in healthcare, and an 8% increase in education, all above the projected inflation for 2026. A 5% increase in disability pensions is also planned. In total, 85% of spending will be directed toward what the president defined as "human capital."
Fiscal rules included in the 2026 Budget
Milei emphasized that spending on national universities will reach 4.8 trillion pesos, and that these allocations reflect her administration's priority in social areas. "If the budget is the government's plan, then it's clear that our priority is human capital," she stated.
➡️ Read more about the impact of the 2026 Budget on pensions.
Fiscal balance as the axis of the 2026 Budget
The president insisted that fiscal balance is non-negotiable. "If we respect the fiscal order, the country can grow like never before. If we break it, we return to inflationary chaos," he warned. He also emphasized that this budget prevents the Treasury from financing itself through the Central Bank, which—he explained—avoids monetary issuance and its consequences.
Milei compared the current model to decades of debt-financed deficits, which—in his words—left a USD 500 billion debt burden and a reputation as "serial defaulters." "The markets punish us for that history, even though today we are one of the five countries with a balanced budget," he noted.
➡️ Analysis: Inflation and country risk in Argentina
Universities and companies within the framework of the 2026 Budget
The bill includes a fiscal stability clause: if revenues fall or expenses exceed expectations, items will be automatically adjusted to maintain balance. This rule seeks to protect the budget against potential economic shocks .
Milei also called for a shift away from viewing businesspeople as public enemies. "If we want more investment, we must create conditions for businesses to prosper without their property rights being threatened," she said. She also linked fiscal balance to a reduction in country risk, lower interest rates, and increased savings.
Political message behind the 2026 Budget
The President closed his speech with a call to stay the course. “Let's not let up. If we abandon the process of change, all our efforts will have been in vain,” he said. He also thanked the Argentine people for the “strength” they demonstrated during the toughest months of his administration, and assured them that “the worst is over.”
The message sought to consolidate the narrative that the adjustment was necessary and that a recovery phase is now beginning. While acknowledging that many citizens still do not perceive improvements in their daily lives, Milei insisted that macroeconomic indicators show progress.
The 2026 Budget is presented in a context marked by a slowdown in inflation, a reduction in the deficit, and an improvement in country risk indicators. According to the Ministry of Economy , the fiscal balance achieved in 2025 allows for moderate growth to be projected for next year, with a focus on private investment and monetary stability. The government aims to consolidate this path without resorting to financing through issuance.
