Argentine President Javier Milei's deeply controversial deregulatory reforms faced a major setback in parliament on Tuesday, when the package was blocked from advancing and sent back for a rewrite, legislators said. 

While the Chamber of Deputies prepared for a vote on the bill, the president's La Libertad Avanza (LLA) party suddenly requested and obtained the session's adjournment. 

Oscar Zago, leader of the ruling party faction said, "The governors (of the provinces) did not keep their word."

The bill will now be looked over again by the LLA's committee for discussion, Zago explained, while emphasizing that the move was not considered a failure for the president. 

Milei 'not willing to negotiate'

The latest obstacle facing the package, which received tentative approval last week pending further scrutiny, arose while Milei was away on a trip to "Israel", where he delivered a fiery reaction.

"Our government program was voted by 56 percent of Argentines and we are not willing to negotiate it with those who destroyed the country," Milei posted on social media platform X, adding that "We know that it will not be easy to change a system in which politicians have enriched themselves at the expense of Argentines".

Members of Parliament resumed on Tuesday their detailed scrutiny of Milei's ambitious "Omnibus" law, addressing its various provisions that touch upon numerous aspects of both public and private life.

Originally comprising 660 provisions spanning the economy, trade, culture, criminal law, and even football clubs, the bill has now been reduced to approximately 300 articles.

Milei achieved an initial victory on Tuesday as deputies approved the principle of granting "delegated powers" to the Milei for one year, allowing legislation by decree in the name of "economic urgency."

However, the evening vote was anticipated to be more contentious over provisions such as reforms concerning the privatization of state companies or the distribution of state resources, over which the opposition intended to demand changes.