Milei proposes docking officials' pay for budget deficits in Argentina

Argentine President Javier Milei has unveiled a package of reforms that would, for the first time, place responsibility for any future budget deficit on the country's political leadership rather than on ordinary citizens, according to the outlet Vigilante.

"For the first time in our history, if politicians don't do their homework, they won't get paid. It's not the people who'll go unpaid — it's the politicians," Milei said. According to the president, the bill will not affect pension payments, social benefits or unemployment benefits, nor will it touch services and salaries in healthcare, security, defense or the prison system.

As Bild reports, Milei's new reform package is aimed at preserving fiscal balance and preventing future governments from financing spending through persistent budget deficits.

Previous Argentine administrations covered budget shortfalls by printing new banknotes, which led to astronomical inflation, devaluation of the national currency and payment crises. When Milei took office as president in 2023, South America's second-largest economy was on the brink of collapse: inflation exceeded 300%, public debt was enormous, and poverty affected 45% of Argentines.

During his election campaign, Milei promised to rein in inflation and put state finances back on a healthy footing. Thanks to harsh budget cuts, dubbed the "chainsaw" policy, he has managed to do just that: by 2025, inflation had been brought down to roughly 30%.

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Source: novinky.cz