He Budget 2025 which was presented last night by President Javier Milei opened a conflict with the PRO by not considering the funds for the co-participation for the City provided for in the Supreme Court ruling. The Buenos Aires government expressed its displeasure at the failure to comply with the injunction. On Wednesday they will meet Luis Caputo and Jorge Macri.
Despite the repeated claims of the Buenos Aires Executive, the Government national sent to Congress the “Law of laws“which, if approved, will not include the 2.95% compensation that the highest court ordered to pay to the Capital. The text establishes the payment of the 1.4% of the co-participation, in continuity with the scheme applied until now.
The Buenos Aires government questioned the decision of Nation to ignore the Court’s ruling, given that will continue to fail to comply with the 2022 injunction which established the new percentage. And they criticized that, despite the fact that the libertarian promised changes, the “discretionality” with which said expenditure will be managed is maintained.
In addition to not considering the full payment of the co-participation as required by the injunction, the remaining 1.55% will be considered as “discretionary”. That additional will be a fixed amount for the entire year of $1.44 trillionthat is to say, $120 billion per monthwhich will not be updated for inflation or revenue collection, so it could be affected by the fall in income in the national public accounts.
Last night, at the presentation before the House of Representatives, Deputies, Milei He raised doubts as to whether the entire project plan will actually be fulfilled, since if fiscal balance is not achieved, the allocation for co-participation will be affected.If the economy does not grow and income is lower than estimated, automatic spending will also fall. and we will reduce discretionary spending until we reach a zero deficit,” he said.
The project of Budget 2025 The bill, which has already been submitted to Congress, promises to spark a debate between the City and the Nation, given that it will not include the payment of the debt, which is estimated to exceed more than US$5 billion since 2020, when the government of Alberto Fernández cut revenue sharing from 3.5% to 1.4%.
The head of the block PRO in the House of Representatives, Christian Ritondo, He forwarded the City’s claim to the Secretary of the Treasury, Carlos Jorge Guberman, during a meeting this afternoon held by pro-government legislators and allied blocs in Congress.
The deputy pointed out that it is “a key issue” for the PRO that the funds that correspond to the City be included in the Budget, as established by the Supreme Court of Justice. “For us It is essential to comply with the ruling of the Supreme Court regarding the co-participation of the city of Buenos Aires,” he said.
For the yellow legislator, the Government must understand that “It is a right” that belongs to the Citythat when this issue was discussed “the Court ruled in favor of Buenos Aires.”
Meanwhile, next Wednesday The Minister of Economy of the Nation and the Head of the Government of Buenos Aires will meet again at the request of the Court to try to reach an agreement that would allow the differences regarding the forms of payment for the co-participation to be settled.
This week’s meeting between Caputo and Macri will not be the first, as meetings have been taking place since January to resolve the conflict. During the last meeting, the mayor optimistically stated that “What could not be resolved in previous administrations can be resolved now.” The national official did not attend the meeting, but is expected to be present on Wednesday.
Source: Ambito
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