Discretionary transfers to provinces collapsed by more than 80% in real terms in the first half of the year

Discretionary transfers to provinces collapsed by more than 80% in real terms in the first half of the year

According to a survey by the Chaco consulting firm PoliticianBetween January and June, the districts that make up the country received a total of around $302,459 million in the paid stage, which meant a nominal drop of 29.7%, which extends to 83.2% if the inflation of the period is discounted.

La Rioja, Formosa, La Pampa and San Luis were the most affected jurisdictionswith contractions close to 100%. In addition, in another 12 provinces the decrease was greater than the general average. The least affected provinces are CABA and the Patagonian provinces of Santa Cruz and ChubutA situation mainly explained by the shipments captured for the operation of hospitals.

Meanwhile, discretionary transfers in accrual status amounted to $440.508 billion, a figure 79% lower than last year.

Thus, The paid/accrued ratio was 68.7%, which implies a significant debt of the National State.l with the provinces, generated mainly in the first quarter. In April and May, debt had been cancelled, but in June the paid transfers were again below the accrued ones.

Specifically, last month the 24 subnational jurisdictions received $86,689 million in payments, 81.2% less than in the same month of 2023. However, the accrued amount reached $104,216 million.

Transfers corresponding to the Ministry of Education showed the highest level of participation in the total, with a weight of 60.5% of the accrued and 46.7% of the paid. This difference was explained fundamentally by the greater weight of the Ministry of Health (second most important department) in the paid than in the accrued. The podium was completed by the Ministry of the Interior.

Regarding the participation of each jurisdiction in the total, the Province of Buenos Aires led both the accrued and the paid, followed by CABA and Misiones, the latter concentrating the majority of the National Treasury Contributions (ATN) made in the first six months of 2024.

Source: Ambito

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