Budget 2025: Now the government says that the cuts to the provinces should be US$20 billion and not US$60 billion

Jose Luis Espertdeputy for LLA, specified the cut in minimum expenses that the provinces must make according to the provisions of the draft Budget Law 2025. According to the official, it should be “ US$20 billion” and not of US$60 billion as Javier Milei had arranged in his speech before Congress.

“The cut, at least, has to be US$20,000 million. And the Nation has to continue reducing spending, there is still spending to be reduced in energy subsidies, and the municipalities also have to reduce spending, in many cases they are overcrowded with “ñoquerío” (a type of drooling), said the deputy.

Provincial spending cuts

In radio statements, Espert He explained that, currently, the total public expenditure – that is, the sum of what was contributed by the Nation, the provinces and the municipalities-, reaches 33% of the Gross Domestic Productestimated at US$600,000 millionOf this total, 16% falls on the national administration and 14% is spent by the provinces, which reaches a total of US$64 billion.

“What has to come here is a Major adjustment of public employment in provinces and municipalitiesWithout their collaboration, not even a scooter can reach 25 points of the product. instead of the 33 that we are today“, the deputy explained.

In addition, the deputy clarified that this cut to 25 points of GDP will not turn the country into “in SwitzerlandHowever, the deputy assured that “without a fiscal deficit and without inflation” the country’s economy will grow again.

Espert also defended the monthly devaluation of 2% which is currently taking place and announced that it will continue “until the end of next year”. Finally, regarding the cepo, the legislator stated that the idea is to gradually “reduce” it, “gradually removing obstacles”.

The meeting of the ruling party with the governors

The first impressions of the provincial leaders on the 2025 Budget project were not positive. In this context, the Minister of the Interior, Guillermo Francos, and the Minister of Economy, Luis Caputo, met with the governors during the day on Monday.

They participated in the meeting in person Rogelio Frigerio (Entre Rios) and Hugo Passalacqua (Misiones), together with his Minister of Finance, Adolfo Safran. On the other hand, they participated by video call Raul Jalil (Catamarca), Leandro Zdero (Chaco), Ignacio Torres (Chubut), Carlos Sadir (Jujuy), Alfredo Cornejo (Mendoza), Alberto Weretilneck (Black River), Gustavo Saenz (Jump), Marcelo Orrego (Saint John), Claudio Poggi (Saint Louis), Claudio Vidal (Santa Cruz), Maximilian Pullaro (Santa Fe), Gerardo Zamora (Santiago del Estero), Osvaldo Jaldo (Tucuman) and Sergio Ziliotto (The Pampas).

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Francos and Caputo held a meeting with 16 governors last Monday.

The Chief of Staff of the Buenos Aires government was present for the Autonomous City of Buenos Aires (CABA), Nestor Grindettiand the vice-governor joined from Córdoba, Myrian Prunotto. The Minister of Finance of Corrientes, Marcelo Rivaswas present representing his province; while the Minister of Economy, Production and Industry, represented Neuquén, Guillermo Koenig.

As far as he could find out Scopethe first to speak were the governors of Corrientes, Salta and Santiago del Esterowho complained about the paralysis of public works that Nation agreed to reactivate in its districts but not that No are contemplated in the 2025 Budget bill. In response to the query, from the national government They pledged to review the text.

Along the same lines, the Patagonian leaders asked if there would be help for the subsidies for cold zone rates and pension funds.

The central theme of the meeting revolved around the request for adjustment by US$60,000 million to the provincesgovernment officials clarified that the President’s statement was figurative and actually means “we all have to make an effort.” “Fiscal balance is the order of the day. If spending goes up, taxes go up.” was heard at the meeting.

On the other hand, the national government stressed the importance of having eliminated the PAIS Tax.

At the same time, sources consulted by Scope They realized that Maximilian Pullaro claimed for the Nation’s debt with Santa Fe. In general terms, the provincial leaders, regardless of their political affiliations, expressed themselves in against making further adjustments.