BUENOS AIRES, Argentina, Sept 16, 2025 (BSS/AFP) - Argentine President Javier Milei on Monday announced plans to boost spending on pensions, health, education and the disabled in 2026, marking a shift after nearly two years of biting austerity.

"The worst is over," Milei said in a televised speech, unveiling the draft 2026 budget eight days after his party was trounced in provincial elections in Buenos Aires.

"The effort all Argentines are making is worth it," Milei assured, while adding: "We understand that many have not yet felt (the results) in their material reality."

Appealing for more time for his libertarian reforms to take effect, he said: "Rome wasn't built in a day."

While announcing relief for some of those worst affected by his deep spending cuts, he insisted that balancing the budget -- his paramount goal since taking power in December 2023 -- remained "non-negotiable."

The 54-year-old leader is facing considerable political and economic headwinds as he gears up for crucial midterm elections next month.

His party suffered a stinging defeat at the hands of the center-left Peronist movement in elections to the legislature of Buenos Aires province that were seen as a litmus test of Milei's popularity.

He goes into the midterms under a corruption cloud, following allegations that his sister and right-hand woman, Karina Milei, received a cut on state medicine contracts for the disabled.