Milei vetoes pension, disability spending increases as Argentina feels cuts

In response to ongoing protests against his austerity fiscal policies, which are hurting many people in their day-to-day lives, the libertarian president of Argentina, Javier Milei, has vetoed bills that would increase pensions and disability spending.

Less than three months before the crucial midterm elections, Milei’s administration made the announcement, claiming that the nation lacks the funds to support the legislation.

A two-thirds majority of the Congress’s lawmaking body passed the vetoes in July.

The president of Argentina, whose party only has a small number of seats in parliament, hopes to win back the year that he successfully stopped pension increases thanks to the conservative PRO bloc.

The president’s office made the suggestion in a statement that the now-vetoed laws had been “irresponsibly” approved by Congress in an “irresponsible manner” without citing sources of funding in a statement released on X on Monday.

According to the report, the spending increases would have contributed to GDP of 0.9% this year and GDP of 1.68 percent in 2026.

The president’s office stated that “this president prefers to tell uncomfortable truths rather than to repeat comfortable lies.”

According to Donald Trump, “the only way to make Argentina great again is with effort and honesty, not the same old recipes,” the statement continued, akin to the president’s “make America great again” rhetoric.

Milei, a self-described “anarcho-capitalist,” has cut federal spending in an effort to lower inflation since taking office in December 2023.

His government has drastically reduced social spending and public works as part of these significant economic changes. It has also eliminated tens of thousands of civil service positions.

Argentina experienced its first annual surplus in 14 years under Milei’s policies in 2024, and its monthly inflation rate dropped below 2 percent for the first time since 2020.

However, it has been said that the president’s policies caused millions of people to become impoverished during the first half of last year.

People are protesting because unemployment has increased and prices have increased by 40% year over year.

According to researchers, pensioners are the hardest-hit group because they have been the target of weekly demonstrations.