According to private estimates, For every US$100 generated in national taxes by the new liquefaction plant (LNG) announced by the Argentine oil company YPF and the Malaysian Petronas, the province ofand Río Negro will receive only 80 cents of a dollar in revenue sharing.
This is indicated by a study by Institute for Argentine Social Development (IDESA)which proposes to simply end the system of distribution of funds between the Nation and the provinces. It should be remembered that the National Constitution reformed in 1994 ordered Congress to prepare a new index of money distribution. but this was never carried out.
If the project goes ahead, even if it is for the province less money comes to you from the national distribution side, the movement that it generates in the local economy will cause a significant increase in the case of taxes such as Gross Incomes in relation to related activities.
But beyond that, IDESA points out that according to data from the Ministry of Economy, for every US$100 “the national State will receive US$68, the whole from the provinces will receive the remaining US$32 and of the US$32, The province of Río Negro will receive 80 cents.
“Black river will receive less than 1% of the total national taxes generated by the project promoted by the province itself. In return, more than 99% of the revenue will be shared between the national State and the other provinces,” the study states.
Surprise announcement
As Ámbito had anticipated, last week it was announced that the LNG plant between YPF and Malaysian state-owned Petronas will be built in Río Negro.
The plant will be located in the Punta Colorada area, in the Rio Negro town of Sierra Grande, where the event will also take place enhancement and modernization of an old, disused port with access to the Atlantic Ocean.
The total investment of the project planned to complete it in a decade it is US$30 billion, at different stages.
Finally, after a thorough study commissioned by an international consulting firm, the choice that prevailed was to install the plant in Río Negro, por on the initial proposal to build it in Bahía Blanca, in the province of Buenos Aires.
This plant will have the purpose cool the gas produced in Vaca Muerta to turn it into a liquid state so it can be exported by ship.
In the fight for investment, Buenos Aires Governor Axel Kicillof criticized YPF’s decision to move the project to the neighboring province.
“This experience shows the enormous importance for the country’s progress of creating rules that encourage provinces to seek their own development,” points out the report of the entity headed by economist Jorge Colina.
He argues that “provincial governments have to internalize that their success depends more on their ability to attract productive investments than on begging for help from national officials.”
Source: Ambito
