Following his party's defeat in provincial elections, Argentine President Javier Milley has proposed increasing social spending next year, despite his strict austerity measures, DPA reported, BTA reported.
In presenting the draft budget for 2026, Milley promised higher spending on pensions, healthcare and education. He defended the spending cuts and highlighted economic achievements, including reduced inflation, but acknowledged that many Argentines had yet to feel the benefits.
"We understand that many people have not yet felt this in reality," he said.
More than a week ago, Milley's libertarian party suffered a heavy defeat in Buenos Aires province, a key economic and demographic hub around the capital.
The vote was seen as a barometer for parliamentary elections in October, in which Milley hopes to improve his performance. He currently does not have a majority in either the lower or upper house, limiting his ability to push through reforms.
Milley's results have been mixed. Inflation has fallen and the fiscal deficit has shrunk, but job losses have increased, subsidies for electricity, gas and public transport have been cut, and the economy has yet to pick up speed. The government has repeatedly intervened in financial markets to stabilize the struggling peso.