Argentina sends 2027 budget to Congress with 4% growth forecast

Argentina's government submitted its 2027 budget proposal to Congress on Tuesday, setting out President Javier Milei's economic projections and spending priorities ahead of next year's presidential election.

The bill forecasts economic growth of 4% in 2027, up from an expected 3% this year, and projects a trade surplus of more than $15 billion. Annual inflation is put at 18%, compared with 29% expected in the current year.

Argentina is due to hold presidential elections in October 2027, and Milei is widely expected to seek re-election. The budget is expected to be the administration's last full-year fiscal plan before the vote and is likely to serve as a roadmap for its economic and political priorities during the campaign.

The proposal now goes to the budget committee before reaching Congress. Argentina has spent extended periods operating without an approved budget, rolling over the previous year's plan, which is the fallback if the process fails to secure approval.

Milei has previously said Argentina should raise defense spending as part of a broader effort to strengthen its sovereignty claims over the Falkland Islands, known in Argentina as the Malvinas. He has taken a harder line on the claim after signals from U.S. President Donald Trump that Washington's longstanding neutrality on the dispute could soften.

Since taking office in late 2023, Milei has centered his economic program on spending cuts and eliminating the fiscal deficit through austerity measures that have sharply reduced public expenditure. Analysts said any proposed increase in areas such as defense would be particularly notable given that record.