Argentina's President Milei proposes law to make politicians pay for budget deficits

President Javier Milei announced a sweeping fiscal reform in a nationwide address from the Casa Rosada on 30 July. The proposal would embed a permanent rule that forbids Argentina from approving or maintaining a budget with a deficit. If the state remains in the red for several months, an automatic mechanism would freeze non‑essential spending, suspend new contracts, and halt salaries for the president, vice‑president, ministers, secretaries, deputies and senators until the deficit is eliminated. Provinces could opt into the same regime. Milei described money‑printing as “counterfeiting” and accused the government, parliament and central bank of criminal collusion. He cited Warren Buffett’s 2011 suggestion that lawmakers lose re‑election rights if deficits exceed 3 % of GDP, extending the idea to direct salary cuts for politicians.