Budget 2026: Government sends balanced bill eyeing 5% growth

President Javier Milei’s government sent a 2026 Budget Bill on Monday night to the lower house Chamber of Deputies outlining fiscal and monetary balance and increased allocations for pensions, disability, health, education and universities.

The text of the bill forecasts economic growth of five percent of GDP and an annual inflation rate of 10.1 percent.

Following President Milei’s nationwide address, the Executive branch formally submitted to the lower house the draft law on spending and revenues for the coming year. It will now be debated by the Budget & Finance Committee, chaired by libertarian lawmaker José Luis Espert.

The proposal – signed by Milei, Cabinet Chief Guillermo Francos and Economy Minister Luis Caputo – forecasts annual inflation of 10.1 percent and year-on-year inflation of 14 percent.

According to the bill, total spending is projected at 148 trillion pesos, with revenues of 148.2 trillion pesos anticipated.

Eighty-five percent of those revenues will be allocated to social spending, including health, education, social programmes and pensions, said Milei.

The Executive Branch also estimates a surplus of 2.7 trillion pesos, according to the draft seen by the Noticias Argentinas news agency.

One of the central points highlighted by Milei in his speech is the increase in pensions, disability, education and health funding, topics which have dominated congressional debate in recent months. The opposition has promoted bills on these topics, voted them through, but then seen them later vetoed by the government.

In this context, the 2026 Budget bill debate will focus not only on increased social spending but also the demands from provincial governors, who are pressing for greater transfers of shared federal revenues, particularly from fuel taxes and ATN national Treasury funds.

On the spending side, the government assigns eight trillion pesos to government Administration, seven trillion to defence and security, 106 trillion for social spending and 14 trillion for public debt.