Argentine President Javier Milei has issued a decree extending the 2023 budget for the year 2025, which has also been in effect for 2024. This decision comes as part of his fiscal adjustment plan and ongoing negotiations with the International Monetary Fund (IMF).
The decree, published in the official bulletin, states, "It is appropriate to extend the resources, financial sources, and credits in effect at the close of the 2024 fiscal year." This unprecedented measure occurs in a context where inflation has accumulated to 628% from November 2022 to November 2024, based on official data.
In September, Milei presented a budget law to Congress projecting an 18.5% inflation rate and a 5% GDP growth for 2025. However, the law did not receive approval due to opposition amendments, which included increased allocations for retirees and universities, deemed detrimental to the government's goal of achieving a fiscal surplus.
The Argentine Association of Budget and Public Financial Administration (ASAP) noted that this is the first time in history that two consecutive budget extensions have occurred and considered it a setback for the institutional integrity of the National Public Sector.
Opposition legislators condemned the extension, suggesting that the Executive never intended for the 2025 budget law to be approved. "Milei would disrupt sessions and block agreements to avoid budget approval and spend as he wished, like a small monarch," wrote opposition deputy Margarita Stolbizer on X.
Official deputy José Luis Espert stated, "A new law will occur when politics accepts three things simultaneously: zero deficit with reduced public spending and no tax increases."
The budget extension coincides with negotiations with the IMF for a new agreement, following optimism from the ruling party due to Donald Trump's electoral victory, who has shown support for Milei.
However, last week, Trump appointed Mauricio Claver-Carone, a former president of the Inter-American Development Bank, as the head of the State Department for Latin America, who has criticized Milei's administration. "The policy of buying time thinking that with Trump more money from the Fund will be obtained is an illusion, it is illogical and will lead to failure," Claver-Carone stated in July.