The Ministry of Economy of Argentina has recently presented the draft budget law for the year 2024. The document poses great challenges and a less favourable situation compared to previous years. The project allocates to the Defense area 2,287,655,974,000,000 pesos (6,559,045,962,886 dollars approx. at official quotation).
This amount is divided into two main categories: for the payment of retirements and pensions (44%), about 1,005,774,965,000,000 pesos (approximately $2,873,527,060,730.03 at official quotation); and for the modernization, enlistment and maintenance of defense capabilities (56%), about 1,277,651,274,000,000 pesos (approximately 3,650,247,149,547.63 dollars). Of this 56%, 1,070,445,463,000 pesos (approx. 3,058,216,162.56 dollars in official exchange) are for personnel costs.
It should be noted that the money allocated for the modernization, enlistment and maintenance of Defense capabilities represents only 0.36% of GDP projected for 2024. With skyrocketing inflation rates, which today exceed 120% per year and the devaluation of the currency; defence spending would experience a reduction in real terms compared to previous years. This translates into a significant blow to the country’s defense capabilities.