Argentine President Javier Milei has vetoed bills aimed at increasing pensions and disability spending, citing the country’s financial constraints. The vetoes, announced on Monday, come less than three months before the crucial mid-term elections. Milei’s administration argued that the country does not have enough money to finance the legislation, which would have amounted to 0.9 percent of gross domestic product (GDP) this year and 1.68 percent of GDP in 2026.
The president’s office stated that the now-vetoed laws had been approved by Congress in an “irresponsible manner” without identifying funding sources. “This president prefers to tell an uncomfortable truth rather than repeat comfortable lies,” the president’s office said. “The only way to make Argentina great again is with effort and honesty, not the same old recipes,” echoing the “make America great again” rhetoric of US President Donald Trump.
Milei, a self-described “anarcho-capitalist,” has implemented large-scale economic changes since taking office in December 2023, including slashing federal spending, removing tens of thousands of civil service jobs, and making drastic cuts to social spending and public works. These measures have led to a significant reduction in inflation, with Argentina’s monthly inflation rate falling below 2 percent for the first time since 2020.
However, the president’s measures have been blamed for tipping millions of people into poverty in the first half of last year. Unemployment has also grown, and prices are up 40 percent year-on-year, conditions that have led people to protest. Researchers say pensioners, who have been at the center of weekly demonstrations, are the hardest-hit group.
Despite the public protests, polls show that Milei’s party holds a sizeable lead ahead of October’s mid-term elections, which will be seen as a referendum on his first two years in office. The vetoes can still be overturned by a two-thirds majority in Congress, where politicians passed the laws in July.
The decision to veto the pension and disability spending increases has sparked controversy, with many Argentines struggling to afford basic necessities. Milei’s government has argued that the retirement and disability pension increases were “irresponsible” as they “jeopardize” efforts to achieve fiscal balance. The increases would have cost the government an additional $5 million this year and $12 million in 2026.