Argentinian President Javier Milei vetoed laws to raise pensions and disability allowances.

In an apprehension that can cause the national exchequer to be dearer, the Argentinian President has vetoed laws recently passed by Congress to raise pensions and disability allowances because they would have increased spending, leading to either printing money or increasing taxes to avoid destroying the fiscal surplus. The head of State announced a decree to prevent the Treasury from borrowing from the Central Bank and a bill to Congress to be sent shortly to criminalise the approval of national budgets that incur a fiscal deficit.

Milei contended that his government has “lifted 10 million people out of poverty” and emphasised that “you cannot fix in two years what was destroyed in almost a century”. He has also warned Congress that he would veto laws that would increase university funding and support for Garrahan Hospital.

“In the last month, Congress pushed through a set of laws aimed at destroying the fiscal surplus. Using noble causes as excuses, they enact laws that lead the national government to bankruptcy. It would be easy to go along with any initiative, as previous presidents did, but my job is not to do what is convenient for me in terms of power”, Milei reiterated, while stating that the recent laws represented “an annualised expenditure of practically 2.5% of GDP, which would imply an increase in public spending equivalent to one YPF per year or, in other words, it would imply additional debt of more than US$300 billion, or a 70% increase in the national debt”.

“Congress has doubled down its efforts at sabotage and destruction because they are aware that every step, we take forward makes it more difficult for them to return to power. Before giving Argentines false hopes, we chose to be frank in telling them how hard the road would be and to be firm in traveling it, understanding that nothing valuable in life happens overnight”, the President insisted.

“My goal is to do good, even if it means being accused of doing evil, we came to fix the economy at its roots. Using noble causes, Congress passes laws that are bankrupting the nation”.

Team Maverick