After failing to achieve the necessary consensus to approve the 2025 Budget in the province of Buenos Aires, the Buenos Aires governor, Axel Kicillof, took aim at President Javier Milei and assured that the top Argentine president intends attack the provinces in the context of adjustment and the proximity of next year’s elections. “I am not going to allow them to bankrupt the province of Buenos Aires or as happened in other provinces; Milei’s logic is to attack and then ask them to sign“.
“I am not going to enter into any extortion process and I am going to put myself in charge of the defense of the province of Buenos Aires,” stressed the highest provincial leader. In detail, last Friday the governor did not achieve consensus and the session in the legislature in which it was going to be discussed the 2025 Budget, the tax law and a debt project.
Axel Kicillof criticized Javier Milei for the province’s 2025 Budget
During an interview with Radio 10, the Buenos Aires governor directly aimed his criticism at Milei for the role that the opposition played in the fall of the session that was to vote on the 2025 budget for the province. According to the Peronist leader, the President seeks “merge the provinces” with a “particular viciousness” on the territory it leads.
“It was a very bad result for what we expected and we were working. More than 40 days ago we presented the tax and debt laws“, the governor detailed what happened in the Buenos Aires legislature last Friday and added: “We are not going to allow ourselves to be extorted nor are they going to bankrupt us“.
Regarding the proposal they had presented, Kicillof stated that “the budget law is a law that sets the priorities, the government plan for next year” and maintained that ““It is exactly framed in what we committed to do in the elections that we won by more than 20 points.”
“Our budget also aims to outline what we do in the province: health, education, security, production, promoting work and I am very proud. It contained forecasts that ended in limbo because Milei decided to operate without a budget. We, at the antipodes; We did everything possible to provide resources for the municipalities. It was a Peronist budget“, reaffirmed the Buenos Aires president.
Regarding the President’s plan and his relationship with the province of Buenos Aires, Kicillof fired: “We have been able to take charge this year of Part of the debt that Milei abandoned, part of the medication coverage that Milei abandoned, we have purchased dengue vaccines to cover what Milei does not do”.
Regarding the tax law, Kicillof explained that the 2024 budget already marked a tax progressivity based on “charging more to those who have the most” and that although it may have generated controversy, it “worked very well.” In this sense, the governor assured that by 2025 the idea is “continue with the same structure, adjusting taxes based on inflation“.
On the other hand, regarding the debt law, Kicillof explained: “The only thing we propose is that (the Legislature) authorize us to take on debt only to refinance this year’s maturities”.
What did the 2025 Budget that was rejected contemplate?
The law of laws for 2025 contemplates expenses of more than $34 billion pesosforesees a primary deficit of $628,680 million pesos and a financial deficit of $1,486,271 million.
In detail, the Buenos Aires Budget details a investment of $1.4 billion pesos for social inclusion; $1.2 trillion in health; $1.2 billion in education; $1.1 billion pesos in security. In parallel, the investment in infrastructure will be 7.8% of total spending; $5 billion will be allocated for the Program to Strengthen Industries and SMEs and more than 3.7 billion pesos will be allocated to the development of cooperative productive activities.
Next year, the same tax pressure reached during 2024 will be maintained. Therefore, in the draft Tax Law it was established that the Real Estate tax, both Urban and Rural, will have increase caps of 28% annually.
At the same time, for almost 90% of taxpayers, the increase in the patent will be only 13.8%when the Market Expectations Survey (REM) expects inflation of 35% by 2025. In addition, those who are up to date will receive a 15% reduction in their final payment.
At the same time, the Buenos Aires Government decided not to make changes to the rates of the Gross Income tax, a measure that seeks to sustain tax relief on the productive sectors. Meanwhile, taxes such as the Stamp Tax and the Free Transfer of Assets will maintain the same rates as the current year, without additional adjustments.
Given the rejection of the project, Kicillof wrote his defense through social networks: “To the very serious situation to which President Milei subjected us during this year, there is now added a blow from the opposition by not approving the budget package. The “Budget project for 2025 guaranteed compliance with the obligations and priorities of the provincial government, despite the financial stranglehold and the debts that the national government maintains with the province.”
Source: Ambito
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