Consumer prices are expected to rise a much more moderate 26.1pc next year, according to the bill, to be presented to Congress in September.

The document forecasts a 3.5 percent expansion in gross domestic product in 2020.

Latin America's No. 3 economy has been hammered by recession and inflation of more than 57 percent over the last 12 months as President Mauricio Macri prepares for a tough run for re-election in the October general election.

Argentina's fiscal targets, on track so far this year, are about to get squeezed as pension payouts rise and tax revenues weaken.

Macri has been tightening spending to trim the debts that forced Argentina into a $57 billion financing deal with the International Monetary Fund last year.

The budget draft forecasts a primary fiscal surplus of 1pc of gross domestic product next year after reaching fiscal equilibrium in 2019.

Analysts are generally more pessimistic in their forecasts for Argentina. A recent Reuters poll of economists showed expectations of a 0.7pc fiscal deficit in 2019.