BUENOS AIRES - Argentina's Senate on Thursday overwhelmingly passed a reform hiking pensions in line with inflation, which could put the strict fiscal balance pushed by President Javier Milei at risk.

The bill, passed with 61 votes in favor and eight votes against, outlines a new mechanism for adjusting pensions.

Libertarian Milei took office in December with strict austerity measures as part of a bid to tamp out triple-digit inflation, though poverty has climbed to hit half of the Argentine population.

He said that he could veto the pension reform, though the measure passed with such broad consensus that a potential veto could cause social backlash.

Senator Juliana Di Tullio, of the Peronist center-left, who voted for the pension adjustment, said "55.5% of Argentines are in poverty and 17.5% are in extreme poverty. Many of them are senior citizens."

Last week, Congress struck down a presidential decree which would have multiplied the intelligence budget, arguing those funds could be used for more urgent social needs.

  - Reuters