The provinces lost $9.36 billion this year due to the decrease in automatic transfer resources, as is the case of tax sharing, and due to the chainsaw that the government of Javier Milei has been applying to discretionary transfers, which include Contributions from the National Treasury (ATN).
The Governors are trying to recover part of those funds in 2025, although negotiations for next year’s Budget are at risk. Strictly speaking, they go for everything they can from the mass of discretionary resources. It is not possible to work on the automatic distribution funds because that money is deposited daily in the accounts of the provinces in Banco Nación based on the percentages already established.
According to a working document analyzed by the Budget and Finance Commission of Deputies -which Ámbito accessed-, Within the framework of the debate for the 2025 budget, between January and October the subnational states endured a cut of $3.92 billion in non-automatic funds while automatic funds were reduced by $5.44 billion.
Among the discretionary funds are the ATN, the repealed teacher incentive fund, and the money that can be used for public works.
One of the demands of the provincial leaders is that The fund that is constituted with 1% of the co-participating mass, which serves to finance the ATN, is distributed entirely this year, to recover a part of what was lost.
Historically it is underexecuted. Except in 2020, which was overspent due to the pandemic, in general less than the total available is used. According to the consultant’s estimates Politikon Chaco, This year it will total about $661.5 billion.
Between January and November only 7.9% of the total would have been executed. And it is to be hoped that the Government will continue along that path in the direction of sustaining the fiscal surplus against all odds. There are some $600,000 million saved that are not used.
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Given the formidable loss of resources that the governors had to face, the demand that the entire fund be distributed ATN represents a recovery that is equivalent to less than 10% of the total resigned this year.
It is worth remembering that all provinces made strong spending adjustments ranging from a floor of 20% to 40%, as in the case of Formosa. Even the province of Buenos Aires, whose governor Axel Kicillof boasts of not following the line of the national government, made a 19% adjustment in spending in the first semester.
That is why The natural thing is that the leaders try to recover something, ensuring games in next year’s spending and income pattern.
Provinces: funds that were not distributed
According to data from Politikon Chaco, if the data is taken from 2017 to 2023 and the partial January to November 2024, the ATN fund added resources of $1.1 billion but $370,050 million were distributed, that is, 33.7%.
“It can be deduced from that that the undistributed remainder reaches $728,961 million, but at current prices. If we convert that data to constant prices of October 2024, the remaining undistributed balance totaled $3.8 billion”highlights the economist’s consulting firm Alejandro Pegoraro.
According to the consulting firm, based on the calculation of the remainder of the fund ATN between January and November 2024 (considering that there are no changes in the remainder of this month), which at constant October 2024 prices would be $661,503 million, its distribution according to criteria of Federal co-participation would generate extra income for the provinces of significant magnitude.
Under this assumption, the province of Buenos Aires could receive $130,900 million, Santa Fe $59,677 million and Córdoba $57,651 million, among others.
Chaco would receive $32.7 billion; Entre Ríos, $32.3 billion; Tucumán, $30.6 billion; Santiago del Estero, $26.8 billion; Mendoza, $26.1 billion; Salta, $24.3 billion; Formosa, $24.2 billion; Corrientes, $23.9 billion; San Juan, $22.1 billion and Misiones, $20.5 billion.
One step below they appear Jujuy with $18.6 billion; Catamarca, $18.3 billion, Río Negro, $16.5 billion; St. Louis, $15.1 billion; La Rioja, $13.7 billion; City of Buenos Aires, $13.6 billion; La Pampa, $12,817 million; Neuquén, $11,000 million; Santa Cruz, $10.6 billion; Chubut, $10.1 billion and Tierra del Fuego, $8.4 billion.
Source: Ambito
I am an author and journalist who has worked in the entertainment industry for over a decade. I currently work as a news editor at a major news website, and my focus is on covering the latest trends in entertainment. I also write occasional pieces for other outlets, and have authored two books about the entertainment industry.
