On the 18th local time, the Argentine Senate overturned President Milei's veto of the national financial fund allocation mechanism bill, which will be submitted to the House of Representatives for consideration and voting.
The national financial allocation mechanism represents 1% of Argentina’s total federal tax allocation, aimed at addressing provincial emergencies and fiscal imbalances. This amount has previously been administered by the Argentine federal government. On July 10 and August 20, the Argentine Senate and House of Representatives passed the new National Financial Allocation Mechanism Act to support local finance and public services by automatic allocation of appropriations. On September 12, Mills rejected the bill by automatic allocation of appropriations that would weaken the federal government’s control over financial resources and disadvantage the achievement of the objective of fiscal balance.
Under Argentine law, the president has the right to veto legislation passed by Congress, but if two-thirds of the House of Representatives voted against the president’s veto, the new law will come into force.
Analysts point out that Miley has long lacked solid support in Congress and failed to build a stable political alliance. Since August this year, Congress has repeatedly overturned Miley's presidential veto on the bill, indicating that the differences between Congress and the president are continuing to deepen, and Miley's economic reforms centered on reducing fiscal deficits and controlling inflation or will face more elbows.