Milei orders the Treasury to be prohibited from using Central Bank funds and will send a bill to Congress to penalize the fiscal deficit
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In a national broadcast, President Javier Milei announced two significant measures aimed at protecting fiscal balance and curbing uncontrolled public spending that threatens the country's economic stability. Faced with a Congress that insists on passing laws that increase spendingwithout clear sources of funding, the president reaffirmed that his Government will not back down from the necessary adjustment policies to restore public finances.
The first concrete measure consists of an instruction to the Ministry of Economy to prohibit the National Treasury from using Central Bank funds to finance the State's primary spending. In Milei's own words: "On Monday, I will sign an instruction to the Ministry of Economy of the Nation to prohibit the Treasury from financing primary spending with monetary issuance. The National Treasury, through this act, will not be able to request borrowed money from the Central Bank to finance its spending."
Javier Milei en cadena nacional.
This prohibition formalizes a practice that had already been ruled out in practice during his administration, but now is consolidated through an administrative resolution in order to eliminate the financing channel that, according to the Government's economic doctrine, was one of the main drivers of Argentina's historical inflation. The excess money in circulation "destroys the value of the money that is in the pocket of every Argentine," the President warned, emphasizing that this measure seeks to prevent the repetition of inflationary dynamics that have harmed entire generations.
Secondly, Milei announced the submission of a bill to Congress to criminally punish the approval of national budgets that imply a fiscal deficit. This text will propose a strict fiscal rule that requires the public sector to always maintain financial balance or surplus. "Every new peso they want to spend must have a first and last name, they must say where it comes from and from whom it is taken," the President stressed. In addition, the initiative provides for criminal penalties for legislators and officials who violate this rule, strengthening fiscal responsibility and control over public spending.
Javier Milei en cadena nacional.
In his reasoning, Milei recalled that recent Argentine history is full of episodes where increased state spending without genuine financial backing ended up fueling monetary issuance and indebtedness, phenomena that triggered accelerated inflation, loss of purchasing power, increased poverty, and social crisis. "We came to fix the economy at its root, without shortcuts or gradualism, and the only way to achieve this goal is through fiscal order, monetary order, and exchange rate order," he stated firmly.
These measures arise in a context of tension with the opposition, which passed in Congress laws such as the pension moratorium, salary increases for teachers, and improvements in disability pensions, which according to official estimates represent additional spending close to 2.5% of the annualized Gross Domestic Product. Milei claimed that these initiatives seek to undermine the fiscal balance achieved and accused the "political class" of trying to regain power through laws that mortgage the country's economic future.
With the administrative formalization of the prohibition on financing spending with issuance and the legal proposal to penalize the deficit, the Government seeks to shield the economic course and limit Congress's ability to promote irresponsible measures. The President acknowledged that the current situation presents an essential choice for citizens: to maintain the path of fiscal and monetary order or return to the old models of deficit and issuance that worsened the Argentine crisis.
