Although the Ministry of Economy via Carlos Guberman has been negotiating with the governors for months, there is still no agreement. “We prefer not to have a Budget than to have a bad budget imposed on us that alters the fiscal balance,” they warned from Freedom Advances before Ámbito’s consultation. At the small table of the “dialogue” governors who make up the leaders of the UCR, the PRO and the provincial parties, they explain that “for months they have been telling us that they are going to comply with the debts that correspond by law, due to co-participation and for the pre-existing pacts. But after voting for everything in Congress, the ATN were all for Peronism.
Budget 2025 Rebellion
That’s why, Federal Meeting of Miguel Pichetto polishes its own opinion but unified with the PRO, the UCR and the 10 governors who formed Together for Change. This platoon has 19 of its own signatures on the commission while UP has 20 and LLA only 6. If there is no agreement on the distribution of the 2025 Budget items, the Casa Rosada threatens to return to govern with the extended 2023 Budget, a scenario even more detrimental to the provinces taking into account that the ruling party could distribute budget funds at its discretion without parliamentary control.
The Budget negotiation began complicatedly since Javier Milei He presented the project in Deputies and loudly demanded an adjustment of 60 billion dollars from the governors on national television. Then, in a tense meeting, the provincial leaders sent Luis Caputo to remake the public works annex. Not only did the items for the works already transferred by Nación not appear, but there were gross manufacturing errors. “There were works that corresponded to Chaco but appeared in another province, beyond the lack of funds,” was the complaint of a governor allied with the Casa Rosada.
He Mauricio Macri’s PRO and the UCR by Rodrigo de Loredo Last week they left without a quorum the special session called by the opposition to put limits on the DNU, Javier Milei’s main instrument of government before the parliamentary minority he holds in both chambers of Congress. It was a protocol gesture in the middle of the Budget negotiation to bring positions closer together. But the return of kindnesses from Casa Rosada never came. What’s more, the governors regret having supported the President’s vetoes of laws such as retirement mobility and educational financing after having received nothing in return.
The term in Deputies is over
The regular period of sessions ends this November 30 and the Chamber can issue opinions until tomorrow. If the negotiation is unstuck, the Budget could go to the floor to be debated this Thursday and, after calling for extraordinary sessions, be approved during December in the Senate.
Among other points, the provinces propose adding to the co-participatory mass, the specific allocation established by the fuel tax. This is 2.5% of the tax that will compensate for transportation and public works, an item frozen by the Casa Rosada in the negotiation with the provinces.
They also demand a compensation referred to the 2017 Fiscal Pactthe payment of the Nation’s debt with the pension funds not transferred and the funds that correspond to them by law and by co-participation. But they also claim funds for national universitiesitems that the Casa Rosada would only grant if progress is made with the elimination of the PASO.
Next year there will also be legislative elections in the provinces and the governors will seek to revalidate their management in a scenario of financial asphyxiation, a drop in revenue due to the recession and the armed support of Freedom Advances in each of its districts with the help of Karina Milei. In this context, the debate on the 2025 Budget project, where the State’s spending and income scheme is defined, anesthetized the opposition in Congress.
The Government foresees an increase in inflation of 18.3% by 2025. According to the project, the value of the official dollar would be $1,207 by the end of next year. According to official forecasts, GDP will fall by 3.8% in 2024, but will recover by 5% in 2025. A surplus is also expected in the commercial basket and an increase in collection.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
