In his latest study, the economist Nadin Argañaraz analyzed the case of the province of Córdoba governed by Martín Llaryora. How the province’s income is composed.
Córdoba reduced its public spending consolidated at 28.1% of Gross Geographic Product (GDP), approaching the objective of 25% of the Gross Domestic Product (GDP) established in the May Pact.
The economist Nadin Argañaraz, president ofl Argentine Institute of Fiscal Analysis (IARAF), analyzed the evolution of public spending in Córdoba during 2024. “Argentine consolidated public spending closed 2024 at 33.5% of GDP, marking a drop of 7.2 percentage points compared to the 40.7% registered in 2023. Despite this progress, there are still 8.5 percentage points left to reach the goal,” explained Argañaraz.
In the case of the administration of Martín Llaryora, andThe adjustment reached 7.8 percentage points of GDP, a value higher than the national average. “Córdoba has managed to reduce the relative weight of its consolidated public spending to 28.1% of its GDP in 2024, positioning itself closer to the national objective,” he indicated.
Córdoba: composition of Public Expenditure
Argañaraz explained that in Córdoba 46% of public spending is explained by the Nation, 42% by the province and 12% by the municipalities.
In the national average, these values are distributed at 53% for the Nation, 39% for the provinces and 8% for the municipalities. “The greater participation of provincial spending in Córdoba provides a wider margin to implement adjustments without depending exclusively on national transfers,” he noted.
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Challenges for jurisdictions
The economist indicated that the challenge to achieve the objective of the May Pact is greater for jurisdictions whose public spending exceeds the average.
“Not all provinces are in the same fiscal situation. Córdoba, with a consolidated expenditure of 28%, is close to the objective, but there are other jurisdictions with a much greater relative weight of public spending,” he stated.
In relation to the Mayo Council, the body in charge of supervising the goals of the agreement, he highlighted: ““It will be necessary to analyze what guidelines and policies are adopted to balance efforts between the provinces, ensuring that the adjustment is sustainable.”
According to the analysis, Córdoba made progress in reducing its public spending in 2024 while maintaining investment in public works, a key point to meet the objectives outlined in the fiscal agreement. “Córdoba’s success lies in its ability to implement significant adjustments while sustaining public works”concluded Argañaraz.
Source: Ambito
