Budget 2025: Javier Milei cools the governors’ table

Clinging to the stability of macroeconomic indicators and the presumed support of public opinion based on surveys, the President advances before an atomized and almost deserted map of the opposition to redouble his bet against the governors, the “caste” that is closest to the vice president than to the Casa Rosada.

Milei ordered to freeze the request of the provincial leaders to set up a negotiating table after the national government’s decision to suspend the treatment of the bill. Budget 2025 in the commission of the Chamber of Deputies.

Mutiny governors

Freedom Advances he did not get the signatures of his allies of the PRO and the UCR given the refusal of their governors to support the ruling party’s ruling that did not include co-participation funds, debts to provincial retirement funds not transferred and co-participation of the fuel tax, among other items.

“The governors do not move from the five points they demand because just as the national government had to comply with the ruling for the co-participation funds for the City of Buenos Aires, now they are also failing to comply with laws and pacts with the provinces,” they warned before the consultation of Scope close to a “dialogue” governor.

But at Casa Rosada they remain inflexible to comply with the iron axiom of zero deficit. “We prefer not to have a Budget rather than have a bad Budget imposed on us. The zero deficit is not negotiated and the governors’ request has a fiscal cost close to 4,000 million dollars“replies an official with an office in Casa Rosada.

Until this Sunday afternoon, from National Executive Branch They insisted that a possible call to the governors after the formal request made to Guillermo Francos to form a negotiating table for the Budget 2025.

The national government’s refusal to negotiate with the provinces hurts twice as much. Not only because of the financial asphyxiation in the territories due to the drop in revenue due to the decline in economic activity, but also because of the upcoming election year.

Javier Milei’s turnstile

The turnstile of La Rosada funds to the provinces hides, in addition to the fiscal premise of adjusting public spending, a political maneuver to defund the provinces in the middle of an election year. Tomorrow begins the last week of the regular session period in Congress and, if there is no Budget 2025the Government must extend the 2023 Budget for the second consecutive year and will have discretionary management of the funds.

In Pink House They maintain that no one can claim their own clumsiness. While Karina Milei La Libertad Avanza expanded nationally with events in the provinces, the governors voted everything for Milei in Congress. They contributed key votes for the Law Basesto support the veto of the law on retirement mobility and educational financing. And they even left a session without a quorum to limit the DNU, the President’s main government tool.

Governors Speech Milei Ordinary Sessions

Governors seek improvements for Budget 2025.

Mariano Fuchila

Mauricio Macri argues the same. “We help you with everything”. The head of the PRO will appear this Wednesday in Junín with mayors of his party. The engineer privately assures that, without the support of the PRO, Milei would not have achieved the scenario of macroeconomic stability achieved in its first year of management with a decrease in Country Risk, fiscal balance, and a decrease in the exchange rate.

The negotiation for Budget It started complicated since Javier Milei He presented the project in Deputies and loudly demanded an adjustment of US$60,000 million 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.