Argentina's 2027 Draft Budget Plans 89.82 Billion Pesos in Mining Investment Tax Incentives

en.Wedoany.com Reported - On September 15, the Argentine government submitted the 2027 national budget draft to Congress, in which tax expenditures arranged under Law No. 24,196 of the Mining Investment Law are projected at 89.82 billion pesos, an increase of 24.8% compared with the 71.9712 billion pesos under the 2026 budget basis, while remaining at 0.01% of gross domestic product. The budget is still under congressional review.

The budget draft also allocates 19.054 billion pesos to the Argentine Geological and Mining Service (SEGEMAR), of which 17.958 billion pesos is current expenditure and 1.096 billion pesos is direct investment. The agency's 2026 budget was 15.330 billion pesos, representing a nominal increase of about 24.3% in 2027; direct investment alone rises by about 42% from 772 million pesos in 2026.

The budget document sets 2027 expenditure for the "energy, fuels and mining" function at about 6.966 trillion pesos, accounting for 3.4% of national administrative expenditure. This item also covers electricity subsidies, oil and gas policy, power engineering, and transfers to enterprises and public institutions, without separately breaking out the specific amount corresponding to mining.

The Large Investment Incentive Regime (RIGI) continues to be included in the 2027 investment policy framework. As of the time of budget preparation, the Argentine government counted 22 projects approved under RIGI, with another 23 projects under evaluation; the approved projects plan total investment of about US$47 billion, involving mining, oil and gas, and other industries. Mining projects cover gold, silver, copper, lithium, as well as lithium carbonate and lithium hydroxide processing. The budget document does not give a specific amount for RIGI-related tax expenditures in 2027.

In the budget's macroeconomic assumptions, the Argentine government forecasts 4% GDP growth in 2027, 9.2% investment growth, 8.5% growth in export volumes, total exports of goods and services reaching US$133.984 billion, and a trade surplus of US$15.560 billion. The budget draft does not separately list a 2027 target for mineral export value.

In 2025, Argentina's lithium production increased by 44.4% year on year, with lithium export value approaching US$1 billion; exports of mineral products including gold, silver and lithium totaled about US$6 billion. These figures are incorporated into the mining and export background in the 2027 budget document.