Argentina's President Milei proposes US‑style government shutdown to curb spending

President Javier Milei announced that his administration is drafting a law to introduce a U.S.-style “shutdown” mechanism for the Argentine executive. Under the proposal, once a ministry’s authorized budget is fully exhausted, the entity would be required to cease non‑essential expenditures, effectively “shutting down” the State. Milei emphasized the principle, saying, “Cuando te agotás el presupuesto no se puede gastar más y se apaga el Estado.”

The shutdown idea is part of a broader reform package that also includes a rewrite of the Central Bank’s charter to explicitly forbid the bank from financing the Treasury, with violations punishable by criminal sanctions. The president called monetary issuance “una estafa” and said the reform would protect the bank’s independence. Milei said the package, which also contains new capital‑market rules, insurance deregulation and stricter fiscal rules, will be sent to Congress in the coming weeks. The proposals aim to embed fiscal discipline into law and signal Argentina’s commitment to macro‑economic stability.

The plan follows recent meetings with cabinet ministers and the central bank president and has been linked to ongoing discussions with the International Monetary Fund.