‘The worst is over’: Milei’s budget and human capital strategy analysed - Video
Argentine President Javier Milei outlined key budget priorities, emphasising social spending, fiscal balance, and a new role for the state in public infrastructure.
Milei delivered a national address emphasising the government’s economic achievements and outlining key budget priorities.
He stressed that “the worst is over” for the country and highlighted that, despite progress, many citizens may not yet feel improvements in their daily lives. Milei presented a budget that allocates 4.8 billion pesos to national universities, increases pensions by 5%, health spending by 17%, and education by 8%, all above inflation. He framed these allocations as part of a broader strategy to prioritise human capital while maintaining fiscal balance.
Political analyst Bruno Lira offered context, suggesting that Milei’s emphasis on social spending may reflect internal pressures and public demonstrations.
Lira told Global South World, the government’s decision to increase health, education, and pensions funding likely responded to retiree marches, university strikes, and hospital labour actions.
This interpretation positions Milei’s announcements not merely as policy statements, but as reactive measures influenced by ongoing social and political dynamics.
The president also discussed the role of a primary surplus, noting that it will enable the state to finance private sector projects, reversing decades of private funding of public initiatives. Milei framed this shift as a way to accelerate public infrastructure and logistics projects that had stalled during previous administrations.
Lira highlighted the significance of this approach, pointing out that it signals both a strategic commitment to public investment and a potential test of Milei’s political adaptability amid persistent challenges.
This story is written and edited by the Global South World team, you can contact us here.
