Budget 2027: The Milei Government seeks to make the largest naval investment in decades

Budget 2027: The Milei Government seeks to make the largest naval investment in decades

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The project sent to Congress authorizes funding to incorporate three conventional submarines and two multi-mission frigates

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Within the Operational Readiness program of the Air Force, the project sets a goal for 2027 of incorporating six F-16 aircraft, in addition to 30 exercises and 98,300 hours of operation.

The Budget also includes multi-year allocations related to the F-16 Program to restore military ramp service in fifteen brigades, bases, and detachments, and to recover the maintenance capacity of runways and helipads of the Palomar Logistics Area Construction Group.

For 2027, the message from Milei's Government proposes “to consolidate a horizon of predictability that allows not only the acquisition of new assets but also the proper maintenance and modernization of already incorporated defense systems.”

In parallel, the Defense function would be allocated $3.778.590,5 million, a nominal increase of 24.4% compared to 2026. With a projected inflation of 18%, the real increase would be approximately 5.4%.

The continuation of the authorizations for the submarines and frigates will now depend on the parliamentary treatment of the project and the subsequent effective acquisition of financing by the Executive Branch.

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For the Argentine Navy, $37.616 billion is allocated to incorporate four light naval helicopters destined for the Naval Base Puerto Belgrano. The investment is part of a maintenance program for means and infrastructure for operational readiness, totaling $643.022 billion.

President Javier Milei
President Javier Milei

Meanwhile, the Argentine Air Force will have $10.090 billion for the modernization and technological update of infrastructure related to the incorporation of the multi-role fighter aircraft in the VI Air Brigade of Tandil and the Río Cuarto Material Area, in Las Higueras. The financing will come from the National Treasury.

The Government of Javier Milei included in the 2027 Budget a historic initiative to advance in the re-equipment and modernization of the Armed Forces of Argentina.

The project submitted to Congress includes authorization for the Executive Branch to manage financing of USD 3.5 billion aimed at the acquisition of three conventional submarines and two multi-mission frigates for the Navy.

This measure, which would represent one of the largest naval investments in recent decades, appears in the annexed sheet to Article 42, which enables the Executive Branch to carry out public credit operations.

Submarines
Submarines

It details two operations related to the Navy: USD 2.3 billion for the acquisition of three conventional submarines, destined for the Naval Base Mar del Plata, and USD 1.2 billion for the incorporation of two multi-mission frigates, destined for the Naval Base Puerto Belgrano.

Both operations are contemplated under the loan modality with a minimum amortization period of three years.

The magnitude of the authorization is also reflected when converting the amount to pesos. According to the exchange rate projected by the Budget itself for December 2027, of $1,847.6 per dollar, the USD 3.5 billion represents approximately $6.47 trillion.

In this context, the submarines and frigates do not appear among the investment projects with assigned credit for 2027. In that section, initiatives that are already underway are listed.