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Argentina Earmarks Privatization and Property-Sale Proceeds for Military Modernization

The decree channels a slice of sell-off revenue to Defense under later congressional review.

Overview

  • The Milei government, which published Decree 314/2026 on Monday, created a national plan to re-equip and modernize the Army, Navy and Air Force.
  • Ten percent of money from sales or leases of state real estate will go to Defense, rising to 70% when the property was already assigned to that ministry, and 10% of privatization proceeds will also be directed there.
  • The decree orders the Chief of the Joint Staff to deliver within 90 days a list of priority equipment and infrastructure needs to guide spending.
  • The measure adds a new funding stream alongside the existing National Defense Fund (FONDEF), which the text says it does not replace.
  • The DNU took effect upon publication and now heads to a congressional bicameral commission for review, with media noting potential projects under discussion such as an integrated base in Tierra del Fuego.