The Government of Javier Milei sent to Congress on Thursday a bill that prohibits monetary issuance aimed at financing the fiscal deficit and requires the submission of budgets with balance or surplus.
The initiative, called "National Commitment Bill for Fiscal and Monetary Stability," was presented by presidential spokesperson Manuel Adorni during a press conference at Casa Rosada.
According to Adorni, the bill will establish a total prohibition on issuing pesos to cover unsupported expenses, and will require that the national budget always present either balance or surplus. “The national budget must always project a balanced or surplus financial result. It will be prohibited to pass deficit budgets. Regulations that do not indicate how expenses will be financed will be null and void,” the official explained. He also announced that new criminal offenses will be introduced to punish officials who violate this provision.
Javier Milei, presidente de Argentina.
The bill that will enter Congress seeks to minimize discretion in the use of public resources, establishing a rigid framework that prevents the incorporation of unforeseen expenses without real financing, and requires all three branches of government to detail the budgetary impact of each initiative.
According to official data, “all regulations that violate these provisions will be absolutely null and void, and public officials who attempt to violate fiscal balance will be punished with the full force of the law.”
Javier Milei, presidente de Argentina.
Since taking office, President Javier Milei has carried out a major reduction of the State, managing to eliminate the fiscal deficit in just one month. Thanks to this measure, at the same time, monetary issuance was halted, which led to a sharp drop in inflation and poverty.
For this reason, the libertarian administration seeks to prohibit issuance as a mechanism to finance the deficit, also requiring the submission of balanced or surplus budgets, with the aim of consolidating long-term stability and economic growth.
