Building on the December 22 cabinet meeting at Olivos where these were prioritized, Javier Milei's government secures approval of the 2026 Budget and enacts the Fiscal Innocence Law. These milestones ensure fiscal discipline amid IMF demands but face criticism over impacts on vulnerable groups like the disabled and public workers. Analysts hail macroeconomic gains while cautioning on social costs for 2026.
The 2026 Budget approval, demanded by creditors like the IMF and U.S. Treasury, provides 'legal and political security.' It follows October 26 midterm elections, positioning La Libertad Avanza as the largest minority in the Lower House from December 10, with governors' Senate backing. The law enables foreign-currency borrowing under foreign law to cover maturities, with reserves near US$15 billion.
The Fiscal Innocence Law, led by Deputy José Luis Espert, raises simple tax evasion thresholds to 100 million pesos (US$68,000) and aggravated to 1 billion pesos (US$680,000), permitting undeclared 'mattress dollars' deposits without origin scrutiny—even from illicit sources. Economy Minister offers Banco Nación for collections, blending state role with libertarian aims.
Fundación Pensar (PRO think tank) applauds stabilization: inflation fell from 211% in 2023 to 26%, with less state intervention and more openness. However, it stresses macro stability needs social balance, province coordination, public works resumption, and priorities in health/education. 2026 growth is expected, but retiree/disability purchasing power lags.
Disability aid tightens via National Disability Agency (ANDIS) closure, announced December 30 by Manuel Adorni, shifting to Health Ministry post-corruption scandals. Aid frozen, emergency law vetoed despite Congress. Over 60,000 public jobs cut since inception, trimming health/education spending.
Ruling bloc eyes February 2026 extraordinary sessions for labor reform and glaciers law. Public sentiment mixes hope with austerity fatigue.
