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Argentina·Trade & Economy

Argentina's Milei proposes US-style shutdown mechanism to enforce spending limits

Thursday, 9 July 2026, 06:34 · 1 min read

Argentine President Javier Milei announced Tuesday he will send Congress a bill to introduce a government shutdown mechanism modelled on the United States system, which would prohibit the executive from spending once its budget allocations are exhausted. The proposal forms part of a broader economic reform package that also includes a central bank charter revision explicitly banning — under criminal penalty — the financing of the Treasury through money printing, a move aimed at reversing a 2012 reform that expanded the bank's mandate beyond currency stability. The announcement comes as Milei's administration seeks to move past months of political turbulence, including the resignation of cabinet chief Manuel Adorni amid a corruption investigation, with the government defending its fiscal austerity drive as essential to achieving a budget surplus.

Sources
MercoPressMilei plans US-style government shutdown mechanism to cap Argentina's spending ↗︎MercoPress (ES)Milei propone un mecanismo de "shutdown" al estilo de EE.UU. para limitar el gasto en Argentina ↗︎
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