The Government of Milei launched the ARMA Plan to allocate privatization funds to military modernization

The Government of Milei launched the ARMA Plan to allocate privatization funds to military modernization
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porEditorial Team
Argentina

The plan establishes a new funding scheme to strengthen military capabilities in a sustained manner.

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The government of Javier Milei made official the launch of the Argentine Military Adaptation and Reequipment Plan (ARMA), an initiative to strengthen and modernize the Armed Forces through an innovative funding scheme.

The measure was established through Decree 314/2026 and has the impetus of the Minister of Defense, Carlos Alberto Presti.

According to the official statement, the plan “establishes a new funding scheme to strengthen the capabilities of the military instrument”, marking a structural change in the way in which resources destined for national defense are allocated and used.

Javier Milei and Carlos Presti.
Javier Milei and Carlos Presti.

One of the main axes of the ARMA Plan is the redefinition of the destination of revenues generated by the administration of State assets

and privatizations.

In this regard, it is stipulated that “in the case of assets that do not belong to the Armed Forces, 10% of the proceeds from sales, rentals or privatizations will be allocated to the Ministry of Defense for application in re-equipment, modernization and strategic infrastructure”.

This mechanism introduces an additional funding channel that makes it possible to reinforce key areas without relying exclusively on the traditional budget.

Another significant change occurs in relation to the assets of the Armed Forces. According to the statement, “in the case of assets owned by the Armed Forces, up to 70% of the revenues generated will be reinvested in the defense system

.”

Until now, these funds were fully invested in the National Treasury, limiting the area's ability to reinvest directly in its own operational and logistical needs.

The statement from the Ministry of Defense.
The statement from the Ministry of Defense.

Within this framework, the objective of the ARMA Plan is to ensure that the revenues generated by privatizations directly contribute to the strengthening of the Armed Forces, accelerating the processes of technological updating, maintenance and acquisition of equipment

.

In addition, the program establishes clear criteria for the allocation of these resources. In particular, it “organizes and prioritizes the re-equipment process based on joint planning and operational needs, with the objective of strengthening response capacity in a sustained manner

”.

The statement also highlights that this scheme “generates an additional source of funding that complements the current budget and existing instruments, and allows for progressive progress in capacity recovery.” In other words, it's not about replacing current funding, but about strengthening it and making it more efficient

.

Finally, the Government of Milei emphasized the long-term impact of the measure, stating that “a scheme is being consolidated that makes it possible to sustain the modernization and re-equipment of the Armed Forces over time.”


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