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ECONOMY | Yesterday 18:50

CEPA: Milei splashed cash on intelligence, but slashed social spending in 2025

Report by CEPA think tank reveals cutbacks in sensitive areas; Sharp real-terms cuts to health, science, social development and public works last year, while intelligence funding jumped 52%.

President Javier Milei’s government increased spending on intelligence in 2025 while sharply cutting funds for health, education, science, social development, transport and public works, a new report shows.

A study by the Centro de Economía Política Argentina (CEPA) economic think tank found that total spending by Argentina’s National Public Administration fell by 29 percent in real terms compared with 2023, reflecting a “significant adjustment in sensitive areas.”

Among state bodies and agencies, the most notable rise was recorded by the State Intelligence Secretariat (SIDE), with spending up 52 percent from 2023 levels. 

Public debt services accounted for eight percent of total expenditure, representing a significant share of the overall budget.

By contrast, deep cuts were observed across most healthcare bodies. The Health Services Superintendence fell by 72 percent from 2023’s spend, national hospitals by between 20 and 42 percent overall, while the ANLIS-Malbrán Institute dropped 26 percent and the National Administration for Medication, Food and Medical Technology (ANMAT) by 25 percent. The Laura Bonaparte National Mental Health Hospital recorded a 38 percent fall in real terms between the two years, while the National Coordinating Institute of Ablation and Implants (INCUCAI) was a rare exception, with a 24 percent increase.

CEPA said several healthcare programmes had been “virtually halted,” including ‘Healthcare in the Territory and Prevention of Non-Transmissible Chronic Diseases,’ which fell 100 percent. The ‘Prevention of Diseases from Specific Pathologies’ plan dropped 88 percent and Prevention of Endemic Diseases 71 percent. The only increase was in the ‘Access to Medication and Medical Technology’ plan rose by five percent.

Cuts were also widespread across science and research. The Programme for the Promotion of Research and Innovation fell 82 percent between 2023 and 2005, the National Commission of Space Activities (CONAE) 19 percent, the CONICET national scientific research institute by 32 percent, the Argentine Mining Geological Service 25 percent and the National Weather Service 34 percent.

In the social sphere, CEPA reported a five percent cut to the ANSES social security agency, while the National Secretariat for Childhood, Adolescence and Family and the National Institute for Associativism and Social Economy (INAES) were both hit by 73 percent cuts. Social development programmes suffered near-total reductions, including Social Economy and the National Social Protection Plan at 100 percent, Funding for the National Early Childhood Plan dropped 90 percent and Comedores Comunitarios y Merenderos (Soup Kitchens) at 52 percent.

Security and defence forces were also affected, with cuts of 31 percent to the Federal Police, 29 percent to the Border Force (Gendarmerie) and Coast Guard (Prefectura), 18 percent to the Army, 20 percent to the Navy and 22 percent for the Air Force.

In transport and public works, CEPA said budgets were “extremely low,” with falls of between 74 and 100 percent, in line with the sector’s near-standstill under Javier Milei’s Presidency to date.

CEPA warned that the National Public Administration is undergoing a sharp budget contraction, with key programmes being undermined. The scale of the cuts to socially and economically impactful policies, it said, points to a “highly concerning” outlook for the continuity of essential public services in a difficult economic context.

 

– TIMES/NA

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