Argentina's Milei pledges to protect fiscal balance in budget speech

By Hernan Nessi

BUENOS AIRES (Reuters) - Argentina's President Javier Milei said during a presentation to Congress on Sunday on the 2025 budget that he would defend his government's commitment to maintaining fiscal balance and veto all bills that threaten it.

Milei, who took office in December, adopted stringent austerity measures to tackle rampant inflation and stabilize the economy, and has called a balanced budget non-negotiable.

He stated he would only consider increasing expenses if spending elsewhere were to be reduced in equal measure.

"If not, it will be vetoed," he said.

Milei also said his aim was to maintain fiscal balance, regardless of macroeconomic issues.

"This draft budget...has a methodology that protects the fiscal balance no matter what the economic scenario is," he said.

The draft budget foresees the economy expanding 5% in 2025, with inflation at 18.3% and the exchange rate reaching 1,207 pesos per dollar by the end of the year.

It also projects gross domestic product growing 5% in 2026 and 5.5% in 2027.

(Reporting by Hernan Nessi, Writing by Daina Beth Solomon, Editing by Adam Jourdan and Jacqueline Wong)