Argentina
A private report found sharp spending cuts ahead of the 2027 Budget submission
According to a CEPA survey published by ElDiarioAR, the actual execution of the National Public Administration fell 32% through August compared with the same period in 2023. The report shows declines in health, education, science and social development, while Intelligence rose.
On the eve of the submission of the 2027 Budget bill to Congress, a report by the Centro de Economía Política Argentina (CEPA), cited by ElDiarioAR, said total execution of the National Public Administration fell 32% in real terms through August compared with the same stretch of 2023.
According to that survey, the cuts were concentrated in sensitive areas such as health, education, science, social development, production and public works. Among the exceptions, the State Intelligence Secretariat posted a 42% real increase in its execution, while Public Debt Services accounted for 12% of total spending executed.
In health, again according to the report cited by ElDiarioAR, the Superintendencia de Servicios de Salud fell 61%, the Instituto Malbrán 30% and ANMAT 38%. In national hospitals, declines ranged between 28% and 51%, with health and prevention programs showing setbacks of up to 100%. INCUCAI was the exception, with a 64% real increase.
The report also found cuts in science and technology: 89% in the Program for the Promotion of Research and Innovation, 35% in CONICET and 65% in CONAE. In education, it reported zero execution in Conectar Igualdad and the National Teacher Incentive Fund, as well as declines of 85% in student scholarships, 92% in teacher training and 97% in school infrastructure.
According to ElDiarioAR, CEPA also detected declines of 75% in the National Secretariat for Children, Adolescents and Family, 80% in INAES, cuts of up to 100% in social economy and early childhood programs, and a 62% drop in community kitchens and soup kitchens. It also recorded setbacks of between 78% and 100% in public works and transport, a 98% adjustment in technical assistance to municipalities and the total elimination of the Fiscal Strengthening Fund for the province of Buenos Aires.
At the same time, ElDiarioAR reported that Javier Milei will not go to Congress to personally present the Budget. The text will be sent to the Chamber of Deputies through formal channels and debate will then open in committee. Economy Minister Luis Caputo would also not attend, and the presentation by deputy minister José Luis Daza is expected.
According to that outlet, the bill will seek to enshrine the zero-deficit target by law through a fiscal rule incorporated as article 11 bis of the Financial Administration Law, requiring a balanced or surplus result and spending cuts if projected revenue deviates. In addition, the Government plans to send a “shutdown” bill inspired by the mechanism in the United States, which would automatically suspend the functioning of the State if authorized funds run out and the country moves toward deficit, with exceptions for pensions, social programs, debt payments, security and defense.
The context is completed by the situation at the Congressional Budget Office. According to ElDiarioAR, on August 30 its director, Gabriel Esterelles, resigned, with his departure formally attributed to “personal reasons” after changes pushed by the ruling party in the agency’s powers. María Eugenia David Du Mutel took over on an interim basis, while a call for applications is awaited to fill the post.
Sources
About this note. Written by El Notero with the assistance of artificial intelligence, based on what was published by the cited outlet. El Notero did not do its own reporting on this event.
