Javier Milei cut non-automatic transfers to the provinces by 84%, which lost more than $2 billion

Javier Milei cut non-automatic transfers to the provinces by 84%, which lost more than $2 billion

The province of Buenos Aires was the most affected in absolute terms, with about a third of that figure destined for the jurisdiction of Axel Kicillof. In April, the negative trend persisted, with a 22% drop in automatic transfers and an alarming drop of 84% in non-automatic ones during the first fortnight of the month.

The Politikón Chaco report, from which the data is derived, indicated that the group of provinces and the Autonomous City of Buenos Aires accumulated a loss of more than $2 billion in resources measured at 2024 prices. Among the causes cited are high inflation, the decrease in collection due to the economic recession and changes in the distribution of co-participation.especially the modification of the Income tax.

During the first three months of the year, transfers to the provinces totaled around $6,800,989 million, almost all of it in the form of co-participation. This figure represented a decrease in 23.1% in real terms compared to the same period of the previous year.

Chainsaw numbers

The province of Buenos Aires led the losses with $595,295 million, of which $400,850 million corresponded to cuts in automatic transfers and the remaining $194,445 million were reductions in discretionary items such as the FONID and the Fiscal Strengthening Fund.

P16 – Axel Kicillof (N_opt.jpeg

Order. The governor of the Province, Axel Kicillof, will take the Buenos Aires claims to President Javier Milei. Profits and Co-participation are two of the requests that the leader of Unión por la Patria anticipated.

In April, the situation is maintained with a 28.8% decrease in national transfers during the first fortnight. The provinces showed falls in all jurisdictions, La Rioja being the most affected, with a reduction of 43.2%, according to the Politikón Chaco report.

Non-automatic transfers experienced the largest drop, reaching a decrease of 84.3%, with significant differences between provinces. Regarding automatic transfers, the drop was 22.4% year-on-year until mid-Aprilwith a more homogeneous distribution between jurisdictions.

In the near future, it is expected that the resources from co-participation will increase, since the ruling party presented a new fiscal package that contemplates the restitution of the fourth category of the Income Taxa change that could have a positive impact on the distribution of resources between the provinces.

Source: Ambito

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