Argentina submits 2027 budget bill to Congress, foresees 4% GDP growth

BUENOS AIRES, Sept 15 - Argentina's government presented its 2027 budget proposal to Congress on Tuesday, laying out President Javier Milei's economic projections and spending priorities ahead of a presidential election next year.

According to the bill, the government forecasts GDP growth of 4% in 2027 from an expected 3% this year, and expects Argentina to record a trade surplus of over $15 billion next year.

Annual inflation is projected at 18%, compared with 29% this year.

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

The bill now moves to the budget committee, then to Congress. Argentina has operated for extended periods without an approved budget, with the previous year’s rolled over, which is the fallback if the process fails to secure approval.

Milei has previously said that Argentina should increase defense spending as part of a broader effort to strengthen its sovereignty claims over the Falkland Islands, known in Argentina as the Malvinas.

Milei has adopted a harder line on Argentina's claim to the Falkland Islands, that Argentina calls the Malvinas  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, making any proposed increase in areas such as defense particularly notable, analysts said. REUTERS