Argentine President Javier Milei announced on Monday that his government will increase spending on pensions, health, education, and support for the disabled in 2026, signalling a shift after nearly two years of stringent austerity measures.
Speaking in a televised address to unveil the draft 2026 budget, Milei said: “The worst is over. The effort all Argentines are making is worth it.”
He acknowledged, however, that many citizens have yet to feel the benefits of his reforms in their daily lives: “We understand that many have not yet felt (the results) in their material reality,” he noted, appealing for patience with his libertarian reforms: “Rome wasn’t built in a day.”
While promising relief for those most affected by deep spending cuts, Milei emphasised that balancing the budget—his top priority since assuming office in December 2023—remains non-negotiable.
Milei faces considerable political and economic challenges as he prepares for critical midterm elections next month.
| Factor | Details |
| Recent election | Milei’s party suffered a significant defeat at the hands of the centre-left Peronist movement in Buenos Aires provincial legislature elections, widely seen as a test of his popularity |
| Corruption allegations | His sister and aide, Karina Milei, is alleged to have received a cut on state medicine contracts for the disabled, casting a shadow over his administration |
| Economic priorities | Despite easing some austerity measures, the budget remains a key focus, aiming for fiscal balance while increasing social spending |
The Buenos Aires provincial elections were a litmus test for Milei’s political strength ahead of next month’s midterms. His party’s defeat has raised questions about his public support as he moves forward with ambitious reforms.
