Argentina’s Milei vetoes pediatric hospitals funding law

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BUENOS AIRES (Reuters) – Argentina’s President Javier Milei has vetoed a law that would have increased budget allocations for pediatric hospitals, the official gazette showed on Thursday.

In his effort to keep public accounts in check, Milei also vetoed a law on Wednesday that would have provided more resources for public universities.

“Once again (Congress) intends to push through a measure that, under the guise of defending a noble cause, generates an excessive and irresponsible increase in public spending,” the presidential decree stated.

“The economy has clear rules, and the first of them is that you can’t spend more than you earn.”

Milei, a libertarian, took office in December 2023 with the promise of shoring up the country’s finances, taking a chainsaw to public spending and taming inflation that exceeded 200% annually.

The opposition-controlled congress has challenged the executive branch’s austerity measures and approved laws increasing funding for universities and pediatric hospitals in recent weeks. It also rejected a presidential veto to increase benefits for people with disabilities.

Milei’s austerity measures have been celebrated by markets and, in 2024, led to the first fiscal surplus since 2010. Despite that, cuts have faced protests and pushback from voters.

The government also suffered a crushing defeat in local elections in the province of Buenos Aires on Sunday, following a drop in popularity caused by corruption accusations in recent weeks.

Milei now faces the challenge of restoring his image ahead of the national midterm elections in October that will decide the control of Congress. This will be key for Milei to carry out reforms to the tax system, labor legislation, and pensions.

(Reporting by Eliana Raszewski; Writing by Isabel Teles and Alexander Villegas; Editing by Aidan Lewis and Philippa Fletcher)