The former Director General of Customs referred to the 2025 Budget, which projects a total collection of $175 billion and explained the reasons for the defunding of the districts.
The former Director General of Customs, William Michelreferred to the Budget 2025which projects a total collection of $175 billion, and explained some of the reasons that explain the loss of resources for the provinces.
In a publication on the social network 57.66% of the resources should end up in the provincial coffers”.
Then he explained: “There are three specific assignments that imply a resignation of resources for the provinces of $6 billion (considering the exchange rate of the Budget as of December 2025, it would be approximately US$5,000 million): (i) the specific allocation of 11% VAT; (ii) the Fuel Tax funds and trusts; and (iii) the tax component of the Monotax that is assigned to Social Security.”
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Regarding the evolution of provincial resources, the former head of the Customs He indicated: “With the passing of budgets The provinces have been losing co-shareable resources to the detriment of what was assigned to the National Treasury. The only relevant exception to this rule was DNU 206/2009, which created the Federal Solidarity Fund, with the purpose of financing in Provinces and Municipalities works that contribute to the improvement of health, educational, hospital, housing or road infrastructure and which was funded with 30% of the sums that the National State received as soybean export rights.”
What is the fiscal situation of the provinces like?
Finally, Michel highlighted the complexity of provincial resources. “The novelty of the current situation is that Never have the provinces seen transfers from the National Government so affected. Either direct transfers as well as the elimination of items such as the National Teacher Incentive Fund (FONID). If the National Government advances in the transfer of obligations to the provinces, the provinces must claim funds that belong to them and that are ‘retained’ by laws and decrees that establish specific allocations to certain co-shareable resources.”
“If this is not reviewed, in 2025 the surplus in the national public accounts will be sustained by the provinces,” Michel concluded.
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Source: Ambito
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