He Government began to weave alliances this Monday to achieve the sanction of the Budget 2025 in Congress. The president Javier Milei will seek approval to strengthen fiscal balance, but warn that if it is rejected, They will govern with the 2023 budget. What implications would that have?
Last night in the House of Representatives Deputies, The head of state presented the “Law of laws” with which he promised to consolidate the “zero deficit”limiting spending based on the income generated by the collection. Estimates for next year predict inflation of 18.3%, a dollar at $1,200 and GDP growth of 5%.
For the national deputy of Union for the Homeland, Carlos Heller, the budget items “will be further cut” if the project is approved. “If the budget sheets match their statements, the budgets for health, education, science and technology and public works will be further cut,” he warned.
He also said that after the bill is introduced, Congress will enter into “an arduous discussion of each point” and “that will produce a result that we will see what it is.” “Of course, the President, if he does not agree, can veto it,” he continued.
The Government on a possible rejection of the 2025 Budget: “If it is not approved, we will have to continue with last year’s budget”
This morning, the Government, through the presidential spokesman, Manuel Adorni, in response to the query of Scope, He hinted at what could happen if a hypothetical rejection of the 2025 Budget takes place. “I don’t want to get ahead of myself, but If it is not approved, we will have to continue with last year’s budget,” he warned.
He also assured that it would be “regrettable” that the “Law of laws” not be approved since, as he said, The only thing that is guaranteed is that resources are not “wasted”“I think it would be the first in history, I have to look for historical records. But it is up for debate as we say,” he added.
Then, the spokesman for Milei’s government He dismissed the absence of opposition legislators during the explanation of the head of State in Congress. “Everyone is free to go or not to go to an invitation that the President. Those who did not want to go may have had personal, political, ideological or whatever reasons, and that is fine because we appeal to everyone to express themselves freely,” he stressed.
And, on the other hand, he spoke about the projections that the Budget raises. “We expect the numbers to collapse because we know the lag that monetary policy has in impacting. Furthermore, we understand that the numbers will collapse from what is stated in the Budget,” he stressed.
What powers will the Government have if it extends the 2023 Budget?
If the hypothetical scenario proposed by Adorni is confirmed, it would be the second time that Milei’s government has opted to extend the “Law of laws.” Last December, weeks after taking office, President signed the decree for the extension for one year.
The extension signed last year allowed the then Chief of Staff, Nicholas Posse, “timely adjust” the budget according to the context.
If the same scenario is repeated, the Bicameral Commission of DNU Congress may choose to reject the DNU. In the event that Congress does not intervene, the Executive Branch will be the one determine, in a discretionary manner, the use of resources.
Source: Ambito
