Argentine president vetoes pension hike bill, citing funding concerns

Argentine President Javier Milei has exercised his veto power on a parliamentary bill designed to modify pension calculations and increase payments to retirees. 

The bill, which had been approved by Congress, sought to boost pension amounts by approximately 7 per cent and introduce immediate debt repayments for federal agencies under final court rulings, Caliber.Az reports via Russian media.

In an official statement published in the government gazette, the executive branch returned the bill to Congress, citing substantial financial concerns. The veto was justified on the grounds that the proposed changes would require additional spending of 1.02 per cent of GDP this year and 1.64 per cent next year, figures deemed unsustainable by the current administration.

The bill's provisions, if enacted, would have led to an increase in pensions and mandated that federal agencies address outstanding debts that had already been adjudicated by courts.

Despite receiving support from various parliamentarians, including members of the moderate opposition who had previously backed government policies, the bill faced significant pushback from the executive branch over its financial implications.

This development marks a crucial juncture in Argentina’s pension reform debate, with President Milei's veto highlighting ongoing tensions between the executive and legislative branches over fiscal responsibility and social spending.