Argentina's Congress passes first budget under Milei

Argentina's Congress approved on Friday the 2026 budget suggested by President Javier Milei, a first since he was elected president over two years ago.

Previously, Milei's government extended the 2023 budget without passing a bill in Congress, resulting in inflation across sectors.

What do we know about the newly passed budget?

The Senate passed the budget with 46 votes in favor,  25 voting against and one abstention. The vote came after the  lower Chamber of Deputies gave its approval.

The budget includes spending of $102 billion (€86.7 billion) and projected growth of 5%, with inflation of 10.1%. It aims to secure a zero deficit mostly through spending cuts.

"We are not going to spend more than we make, we are going to get our accounts in order," said Senator Ezequiel Atauche, a member of Milei's party.

Last week, thousands took to the streets in Buenos Aires to protest against the Argentine leader's proposed reforms involving the country's labor laws.

Milei responded by promising "a lot more reforms."

Milei's party, La Libertad Avanza, made significant gains in the newly elected Congress, with the government hoping this will help in pushing forward its reforms to Argentina's labor and tax systems.

Edited by: Rana Taha