Bittersweet win for LLA: deputies pass budget but strike down key chapter

President Javier Milei suffered a bittersweet win on Thursday morning. Although deputies approved the governments budget bill for 2026, ruling party La Libertad Avanza (LLA) was unable to secure approval of a key chapter authorities consider vital to maintain the country’s “zero deficit economic policy. The lower house, where LLA has the first minority, approved the bill with 132 votes in favor and 97 against in extraordinary sessions that the government convened until December 30. The bill, which will now go to the Senate, is the first Milei budget proposal that is voted and now partially approved by Congress. In 2024 and 2025, the government extended the previous year’s budget by decree, which allowed it to allocate funds at its own discretion. The budget bill projects economic growth of around 5% in 2026 and inflation of about 10%, with a fiscal surplus of 1.2% of gross domestic product (GDP). It prioritizes social spending, allocating about 85% of resources on areas such as health, education, and pensions, which all receive increases above the estimated inflation. However, one of the most benefited by the new budget is the State Intelligence Secretariat (SIDE), which will grow by 19%. A resounding rejection The only section of the bill that was rejected was Chapter 11, considered to be the most controversial and sensitive. The main item of the section is article 75, which proposed derogating special budget laws sanctioned by Congress that guaranteed emergency funding for public universities and support for people with disabilities. The final vote on the chapter ended with 123 votes for rejection and 117 for approval, with 2 abstentions.The struggle between the Milei administration and the opposition over these laws has been constant in 2025. The president, who vetoed laws supporting these initiatives, suffered major legislative defeats in September and October when Congress successfully voted to overturn his rejections. Despite this, the government has yet to enact that legislation.