Javier Milei advances reforms amid fiscal deficit and IMF waiver

President Javier Milei’s administration is intensifying negotiations with the PRO bloc and other Senate groups to approve a slate of reforms, including the property‑rights law, electoral reform, a new charter for the Central Bank and further deregulation measures. Repeated setbacks in the Senate—most notably the failure to secure enough votes for the property‑rights bill—have forced the government to seek concessions and to reorganise its legislative strategy.

At the same time, Argentina posted a primary fiscal deficit of about $696 million in June, driven by the seasonal payment of the “aguinaldo” and a postponement of personal income‑tax filings. The deficit caused the state to miss its IMF fiscal‑target of a $6.9 billion surplus for the first half of 2026, prompting officials to consider requesting a waiver from the fund. The central bank has been buying dollars, accumulating roughly $13 billion in reserves, yet the overall fiscal balance remains under pressure.

Milei has also floated a “shutdown” mechanism, modelled on the U.S. budget‑closure process, to enforce fiscal discipline if the budget is exhausted. Parallel to these policy moves, his allies are preparing a re‑election plan for 2027, aiming to solidify political alliances and secure a mandate for continued economic reforms.