Javier Milei's government increased the budget for education, health, and security.

The Government of Javier Milei formalized the first adjustment in the 2025 Budget through decree 186/2025, following the lack of approval of a budgetary law by Congress, presented on September 15, 2024.

The measure includes more funds for education, health, and security, while maintaining an adjustment in other allocations. Additionally, it establishes a renewed payment scheme for the debts of the electric sector, allowing obligations to be settled with state assets.

Although the regulation was signed yesterday, when the Ministry of Economy allocated an extraordinary amount of $200 billion to assist those affected by the storm in Bahía Blanca and General Cerri, this amount is not included in this decree and will be subject to a separate budgetary reassignment.

Main points of the decree

Reallocation of funds: Allocations for the Ministry of Security are increased, with the purpose of strengthening control over prosecuted or convicted individuals. More resources are also allocated to the Ministry of Health and the National Disability Agency, focused on auditing disability pensions. Meanwhile, transfers to the Wholesale Electricity Market Administrator Company (Cammesa) are reduced.

Energy investment: Contributions to Energía Argentina S.A. (Enaersa) are reinforced to finance expenses related to the Condor Cliff - La Barrancosa hydroelectric project, located in Santa Cruz.

Regularization of electric debts: A special regime is established to regularize the debts of electric distributors with Cammesa and the Wholesale Electricity Market (MEM), allowing payment plans in up to 72 installments. Additionally, a credit program is launched for distributors that have met their commitments.

Financing for provinces: Milei's Government is enabled to grant guarantees that allow provinces and the Autonomous City of Buenos Aires to access external financing. The cancellation of provincial debts through the delivery of state real estate is also authorized.

International contributions: Payments to the International Fund for Agricultural Development (IFAD) of USD 2.5 million in three annual installments and to the Inter-American Development Bank (IDB) of USD 436.9 million in seven installments are approved.

Education: The validity of article 7 of Law 26.075 is restored, ensuring the automatic distribution of educational funds to provinces and municipalities.

The decree also confirms the emergency in the energy sector until July 9, 2025, maintaining the gradual subsidy reduction scheme. Additionally, it establishes a fiscal quota of $195 billion for the benefits of the Knowledge Economy Promotion Regime.

More details

Financial Assistance to Public Companies, Ministry of Economy: Reduced by $1,378.408 billion.

Economic Services, Obligations of the Treasury: Increased by $1,245.420 billion.

Penitentiary Affairs, Ministry of National Security: Increased by $61.969 billion.

Common Activities of Health Management Programs, Ministry of Health: Expanded by $30 billion.

Federal Security, Ministry of National Security: Increased by $16.429 billion.

Relations with the Provinces and Regional Development, Cabinet Chief of Ministers: Cut by $15 billion.

Non-Contributory Pensions for Work Disability, Ministry of Health: Grows by $13.507 billion.

State Intelligence Information, Presidency of the Nation: Increased by $7.366 billion.

Operational Enlistment of the Army, Ministry of Defense: Increased by $4.1 billion.

Central Activities Deputy Chief of Cabinet of Ministers: Expanded by $2.529 billion.

Other modifications: Increased in other jurisdictions by a total of $4.01 billion.

The net effect of these modifications implies, if fully executed throughout the year, a reduction of the total expenditure allocated in the current Budget of $8.079 billion.

The decree is signed by President Javier Milei and the ministers Guillermo Francos (Cabinet Chief of Ministers and Interior), Gerardo Werthein (Foreign Relations), Luis Petri (Defense), Luis Caputo (Economy), Mariano Cúneo Libarona (Justice), Patricia Bullrich (Security), Mario Lugones (Public Works), Sandra Pettovello (Human Capital), and Federico Sturzenegger (Deregulation and State Transformation).