Although the statements of several figures of the ruling party denote a certain prejudice against governors Regarding an alleged lack of budgetary responsibility, the reality is that They also apply a significant adjustment and maintain the surplus in their accounts.
According to the consultancy firm Politician Chacothe consolidated data of the 24 jurisdictions indicates that, between January and March of this year, they endured a 16.9% drop in revenue And, in response to this, they applied their own “chainsaw,” although lighter than that of the national government. Expenses fell 24.3%.
The consulting firm run by the economist Alejandro Pegoraro He points out that “the strong general adjustment of spending allowed that, even in this scenario of strong contraction of income, it was closed the first quarter of the year with surplus results.”
While the president Javier Milei highlights that the Minister of Economy, Luis Caputowould be carrying out the “most important adjustment in history”, The governors are not far behind and have adapted to the general situation, despite the cuts in national funds.
The consolidated balance of the provinces was in surplus
“The consolidation of subnational jurisdictions presented an operating economic result (which arises from the difference between current income and current expenses) $2.9 trillion surplus”the report says. The result amounts to a improvement of 11.5% compared to the same period in 2023.
On the other hand, the consultancy firm states that “the primary outcome (which arises from the difference between total income and primary expenditure) was a surplus of $2.6 billion”. That represents a 80.8% real increase compared to last year.
On the other hand, according to the study, “the financial result (total income minus total expenses) was in surplus by $2.1 billion.” This represents a real improvement of 122.9% compared to last year.
The provinces report little
The public information system of the provinces in relation to budgetary issues is still far from optimal. As the third quarter of the year begins, The subnational states just finished presenting on August 21 to the National Directorate of Provincial Affairs (DNAP), first quarter revenue and expenditure data.
In this regard, a report by the Argentine Association of Budget and Public Finance (ASAP) He says that only two provinces, Entre Ríos and Santa Fe, comply with the reporting requirements established by the Fiscal Responsibility Law.
ASAP developed a special table in which Scores are assigned based on the publication of certain information, such as budget execution, program expenditures, etc.
The main results are as follows:
- Strict compliance group: Entre Ríos and Santa Fe
- High compliance group: Cordoba, Catamarca, Chaco, CABA, Tucuman, San Juan, Tierra del Fuego,
- Intermediate compliance group: Neuquén, Chubut, Jujuy, La Rioja, Salta, Mendoza,
- Low compliance: Formosa, Rio Negro, Santa Cruz, Santiago del Estero, Corrientes, Misiones, Buenos Aires
Source: Ambito
