The automatic transfers to provinces They fell 20.6% year-on-year in April, product of the economic recession that affected co-shareable resources.
The total resources sent to the interior and to the City of Buenos Aires was $2,691,921 million, which represents an increase of 210% compared to the same month last year, but when adjusted for inflation, becomes a real decrease of 20.6%.
In this way, the first quarter closed with a decrease of 19.2% compared to the same period in 2023, the worst since 2017.
The data corresponds to work carried out by the consulting firm Politikón Chaco.
Measuring transfers in constant currency, April 2024 was also below the same month of 2022 (-24.5%), 2021 (-21.6%), 2019 (-11.3%), 2018 (-11 .6%) and 2017 (-4.2%), the work specified.
Regarding the causes of this decrease, “A scenario similar to that of previous months is observed in relation to the sharp drop in income tax collection (-35.6% real year-on-year) while VAT also showed a very considerable decline (-8.7% real year-on-year, although it is less than the decrease recorded in March)”said the report.
Automatic transfers are those that derive from co-participation, special laws and compensation of the Fiscal Consensus and are different from “discretionary transfers”, which were reduced by more than 80%.
April was the eighth consecutive month of decline in automatic transfers and the sixth consecutive month where the decrease is double digits.
These numbers explain the need for the Governors to approve the fiscal relief package, since 60% of the new resources generated by the regulations included therein will be distributed among the provinces.
“The fiscal package is needed by the provinces, not by the Nation, which has a surplus,” said President Javier Milei yesterday when answering a question about possible obstacles in the Senate to approve the laws that were approved in the Chamber of Deputies on Tuesday.
Source: Ambito
