Milei Slams Brazil Deficit on Way to UN, Invokes Argentina’s 2001 Collapse
Argentina · Brazil
Key Facts
- —What happened Javier Milei posted a chart of Brazil’s budget deficit on X on 22 September 2026, as he travelled to New York.
- —What he said He told Argentina’s “local progressives (lefties)” that in 2001 Argentina “had a similar situation and we already know how it ended”.
- —The numbers Brazil’s central bank puts the nominal deficit, including interest, at 9.34% of GDP in the 12 months to July.
- —Why it matters Milei’s model has become a talking point in Brazil’s election, whose first round is on 4 October 2026.
- —The catch The post did not name Lula, and no response from the Brazilian government had been reported by Tuesday afternoon.
- —What comes next Milei addresses the UN General Assembly on Wednesday, 23 September 2026, a day after Lula opened the debate.
Argentina’s president used a chart of Brazil’s budget gap to mock the Argentine left, reopening a feud with Lula less than two weeks before Brazil votes.
Argentine President Javier Milei has reopened his quarrel with Brazil, this time over money. In a post on X on Tuesday, 22 September 2026, Milei cited the Brazil deficit as a warning to Argentina’s left.
He shared a chart of Brazil’s budget results and compared them with Argentina before its 2001 collapse. The post went out as he travelled to New York for the United Nations General Assembly, the annual gathering of world leaders.
The timing was pointed. Brazil’s President Luiz Inácio Lula da Silva opened the Assembly’s general debate that morning.
Brazilians choose their next president in a first round on 4 October 2026.
What Milei wrote
The message was aimed at Argentine critics who, in Milei’s telling, praise Brazil’s spending.
“The local progressives (lefties) want to show us this fiscal policy as the model to follow… NO THANKS,” he wrote, according to Ámbito and Perfil.
“Never count on me for this nonsense,” he went on.
“In 2001 we had a similar situation and we already know how it ended… CIAO!”
The post did not mention Lula by name. Argentine and Brazilian outlets, including Gazeta do Povo, nonetheless read it as a fresh jab at the Brazilian leader.
Milei left Buenos Aires at 11 p.m. local time on Monday, according to Infobae. He was due in New York at 8:30 a.m. New York time on Tuesday.
The chart and the real numbers
The chart, titled “Brasil – Resultado fiscal”, was produced by the consultancy Econométrica from Treasury and central bank data. It shows deficits of 11.6% of GDP in 2020 and 9.9% for 2026, Ámbito reported.
Those are nominal figures, which include the interest Brazil pays on its debt. That bill is heavy because Brazil’s central bank keeps interest rates high to fight inflation.
The central bank’s own latest data, published on 31 August 2026, put the nominal deficit at 9.34% of GDP. That covers the 12 months to July, according to Poder360.
Before interest, the gap is far smaller. The primary deficit was 0.67% of GDP over the same 12 months, and gross government debt reached 82.5% of GDP in July.
Why Milei reaches for 2001
For Argentines, 2001 is shorthand for disaster. Years of deficits and a rigid peg to the dollar ended in frozen bank deposits, street riots and a sovereign default.
President Fernando de la Rúa resigned in December 2001 amid the unrest. Milei, an economist, has built his political brand on the promise never to repeat that story.
His government says it has delivered. Argentina’s Economy Ministry reported a 2025 surplus of 0.2% of GDP after interest, the second year in a row.
A feud with a long fuse
The Milei Brazil deficit post lands on a relationship already at a low. In late July, Milei spoke at a convention of the Liberal Party, Brazil’s main opposition party, in São Paulo.
There he called Lula a “thief” and a “convict”, according to Exame. Lula’s 2017 corruption conviction was later annulled by Brazil’s Supreme Court.
Brazil’s Foreign Ministry, known as Itamaraty, recalled its ambassador in Buenos Aires, Julio Bitelli, for consultations. Foreign Minister Mauro Vieira has said relations will normalise only if Milei stops his “aggressions”, Gazeta do Povo reported.
Milei as a Brazilian campaign issue
The Argentine’s spending cuts have become a proxy fight in Brazil’s race. Senator Flávio Bolsonaro, the populist-right candidate and son of former president Jair Bolsonaro, praises the model.
His economic adviser has said the campaign will draw inspiration from Milei’s government, Bloomberg Línea reported. Lula’s Workers’ Party has answered with videos about Argentine job losses.
Lula plans to tie both Milei and United States President Donald Trump to his rival, according to CNN Brasil. At the UN on Tuesday, he said “Brazil does not fit in anyone’s backyard”, without naming Argentina.
What comes next
No response from the Brazilian government to the Milei Brazil deficit post had been reported by Tuesday afternoon.
Milei addresses the General Assembly on Wednesday, 23 September 2026, at noon Argentina time, La Nación reported. He is travelling with Foreign Minister Pablo Quirno and his sister Karina, the presidency’s secretary general.
On Thursday he speaks at the Economic Club of New York before flying home.
More: Argentina coverage, every day from The Rio Times.
Frequently Asked Questions
What did Milei say about Brazil’s deficit?
In a post on X on 22 September 2026, he shared a chart of Brazil’s budget results. He wrote that Argentina’s “local progressives (lefties)” present that fiscal policy as a model, and added: “in 2001 we had a similar situation and we already know how it ended.” He did not name Lula.
How large is Brazil’s deficit?
Brazil’s central bank reported a nominal deficit, which includes interest payments, of 9.34% of GDP in the 12 months to July 2026. Excluding interest, the primary deficit was 0.67% of GDP. Gross general government debt stood at 82.5% of GDP in July.
Why are Milei and Lula at odds?
They sit at opposite ends of the political spectrum. The row deepened in July 2026, when Milei called Lula a “thief” and a “convict” at an opposition event in São Paulo. Brazil then recalled its ambassador from Buenos Aires for consultations.
Has Brazil responded to the post?
No response from the Brazilian government had been reported by the afternoon of 22 September 2026. Lula spoke at the UN that morning about sovereignty and Brazil’s elections, without naming Argentina or Milei.
Sources: Ámbito on the post and the chart, Perfil on Milei’s wording, Gazeta do Povo on the post and the diplomatic row, Infobae on Milei’s flight to New York, La Nación on Milei’s UN schedule, Poder360 on Brazil’s central bank fiscal data, Argentina’s Economy Ministry on the 2025 surplus, Exame on the July ambassador recall, Bloomberg Línea on Milei in Brazil’s campaign, CNN Brasil on Lula’s campaign plans, Portal Tela on Lula’s UN speech
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error
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