Without a Budget, the Government regulated the extension and set guidelines for spending in 2025

Given the lack of a Budget law for 2025, which the opposition claims to discuss in Congress but the government of Javier Milei did not send to extraordinary sessions, the Executive defined the allocation of resources and public expenses for this year. This was determined by Administrative Decision 3, published this Thursday in the Official Gazette.

This occurs within the framework of the extension of Law No. 27,701 of Budget 2023after failing to achieve consensus in Congress to approve a new law for this year. It is the second consecutive period in which the budget is established through a legislative extension.

Details of the Administrative Decision

It should be noted that although it does not have a 2025 Budget, the Government assured that it will deepen the adjustment of spending – as Minister Federico Sturzenegger called the “deep chainsaw” – and that if income is higher than expected it will advance with tax reductions.

The standard, published in the Official Gazettebears the signature of the Chief of Staff, Guillermo Francosand the Minister of Economy, Luis Caputo. Among the main points, it establishes:

• Budget validity 2023: Law No. 27,701 is used as a basis, with adjustments according to Decree No. 1131/24.
• Quarterly control: The evolution of personnel and hiring plans must be reported to the Ministry of Finance.
• Vacancy management: A mechanism is available to certify vacancies and finance their coverage.
• Indicative amounts: Some spending items may be modified according to needs, including consumer goods, services, transfers and debt payments.

Regarding public employment, the Government determined that the Jurisdictions and Entities of the National Administration must send quarterly to the Ministry of Finance the information corresponding to the evolution of their plants and hiring of personnel of any nature, implementation modality and whatever their nature. source of financing.

Ministries and other public entities must certify the vacancy of the position that is proposed to be filled and its corresponding financing.

The incorporation, approval, reassignment and repeal of positions in executive functions will be approved by the President of the Nation along with the approval of the organizational structure.

Criticisms and risks of operating without a new law

The use of an extended budget raises questions in sectors of the opposition, who warn about the lack of transparency and parliamentary discussion. In addition, specialists highlight the impact of operating with a resource and expense base designed for a different economic context.

Article 7 of the regulations allows flexible adjustments in certain items, which could respond to an attempt by the Government to adapt to economic demands, but also opens the debate on the discretionary use of funds.

Budget modification powers

The decree establishes that certain budget decisions may not modify the destination of the resources originally planned for:

• Main purposes.
• Capital expenditure.
• Financial applications.

In this way, it seeks to guarantee certain stability in sensitive areas, such as infrastructure or basic services.

Article by article, what is defined in the standard:

• The resources, budget credits, positions and current teaching hours are established according to the extension of Law No. 27,701 (Budget 2023).
• National jurisdictions and entities must report quarterly to the Ministry of Finance about the evolution of their staff templates. Said Secretariat is empowered to issue explanatory regulations.
• The coverage of Vacant positions require certification of vacancy and financingin accordance with the provisions of Law No. 27,701 and Decree No. 1148/24.
• The approval of positions in the National Public Employment System (SINEP) and other ranks will be jurisdiction of the President, prior intervention of the corresponding Secretariats.
• Jurisdictions must enter contributions to the National Treasury in quarterly installments. The Ministry of Finance may adjust dates according to the financial situation of the organizations.
• They are considered indicative budget amounts assigned to specific spending items and activities, including programs and their geographical distribution.
• Intelligence expenses, including those reserved, They require approval from the Secretariat of State Intelligence for budget modifications.
• The powers for budget modifications and its mandatory notification to the National Budget Office, which has eight business days to issue.
• Financial transfers and assistance to non-financial public companies will be allocated in Jurisdiction 91, complying with budgetary regulations and under the supervision of the Ministry of Finance.
• The remaining resources for 2024 of the jurisdictions and entities of the National Executive Branch They must be entered into the General Treasury of the Nation before October 30, 2025, except for exceptions provided by law. The Ministry of Finance may extend this date and make necessary budget adjustments.
• It is mandatory to submit to the National Budget Office the annual and quarterly programming of physical goals, gross production and progress of works. Reports must also be made quarterly on the physical execution of the programme, justifying deviations. The Ministry of Finance can sanction non-compliance.
• It requires the monthly presentation of the execution of relevant physical measurements, within 15 days after each month.
• It is delegated to the directors of the National Budget Office the power to modify budget quotas for up to $50 million per quarter and make technical adjustments.
• The assigned budget quotas can be modified by the administrative managersaccording to conditions detailed in an annex. The Ministry of Finance may adjust these conditions.
• Works cannot be contracted or property acquired without qualification. “Satisfactory formulation and evaluation” awarded by the National Directorate of Public Investment. Projects must meet regulatory requirements before being incorporated into the National Public Investment Plan.