The official message sought to highlight the government’s decision to allocate a level of items above inflation. However, the novelty liked little in the sector, due to the low level of comparison.
Although in him Budget 2026 that the national government presented to the Congress A 50% increase in capital expenses of the National Administration was estimated, well above projected inflation (10.1%)total expenditure would represent approximately one 0.3% of GDP. It is a level even lower than that of 2024, The year that the President himself Javier Milei defined as “the biggest adjustment in history.”
Disaggregated, the most important component of these expenses corresponds to Capital transferswhich absorb 49.7% of the total and increase 81.4%. For its part, The direct real investment reaches a rise of 26.1%, while financial investment amounts to 41%according to the figures embodied in the official text. The total to spend for next year would be $ 3,286 billionan increase of 50.3%, compared to 2025.
However, before the consultation of Scopethe head of the Argentine Chamber of Construction (Shrimp), Gustavo Weisshe received with coldness the announcement. “There is no increase. It is the same percentage of 0.4% of GDP, just like this year, “said the businessman.
Lower resources that in 2024
In fact, As can be seen from the budget data, it would even be lower. With a Estimated GDP in approximately $ 1,033 billion for 2026according to what is inferred from the estimated tax revenues for this year and next, Capital spending would be 0.32% of the gross domestic productaccording to calculations of ASAP. By 2025, the percentage would be even lower: 0.25% of GDP.
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If that estimate is fulfilled, It would imply that the sending of resources was less than during the first year of management of the government. According to figures from the Congress Budget Office (OPC)Public investment last year was $ 2.09 billion, which represented a real decrease of 75.1% year -on -year in comparison with the last year of Alberto Fernández. It went from representing 1.3% of the product in 2023, only 0.4% in 2024.
The bad moment of construction
The novelty is part of a delicate situation for the construction sector, one of the most hit by the adjustment carried out by the economic team. According to INDEC data, Construction fell 20.77% between November 2023 and July this year.
The collapse of the activity also translated into employment destruction. According to the Institute of Statistics and Registry of the Construction Industry (IERIC), since the arrival of Javier Milei to Casa Rosada and last June 67,934 jobs were lost, which implies a 16%drop.
In August, the situation seems not to have changed much. The built index, which measures the evolution of the volumes sold to the private sector of construction products, registered a drop from 8.59% monthly desestationalizedwhile in the interannual comparison He scored a 5.5%drop.
Source: Ambito
