The internal fight in Peronism itself also did its thing: changes were promoted in nearly 70 articles of the Budget, most of which Kicillof rejected, while several mayors pushed to create a fund for 200 billion pesos for security and increase co-shareable resources for municipalities by 1% (400 billion pesos). The result was that the sessions foundered and there was no Budget.
Over the days, these tensions calmed down, especially after Kicillof’s commitment to the community leaders to create a freely available fund 30% more than this year’s, which could reach up to 200 billion pesos.
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Last Monday, legislative sources indicated that the new president of the Chamber of Deputies, Alexis Guerreraand the head of the Union for the Homeland bloc, Facundo Tignanellimanaged to gather the votes for the Budget and the Tax Law, that is, the simple majority (47 votes out of 92 present), but they were unable to advance the guarantee for the debt. Today, unblocking that item is the key to obtaining an agreement.
What other things are negotiated
The radicals, the PRO and the dialoguist libertarians (those who came to their seats through LLA but before taking office set up their own benches) demand several issues to provide the missing votes.
In addition to some tweaks in the Tax Law, they demand spaces of power such as chairs in the board of directors of Banco Provincia and resume the definitions to fill the vacancies in the Supreme Court of Justice. For example, the UCR promotes to the highest court the president of the Deliberative Council of General Pueyrredón, vice dean of the Faculty of Law of the University of Mar del Plata, former member of the Council of the Judiciary of the Nation and wife of the senator Maximiliano Abad, Marina Sánchez Herrero.
The Kicillof government responds that the budget discussion should not be mixed with judicial vacancies, but they are open to advancing in the Bapro board positions. “Some expire and can be changed. It would be a discharge for discharge,” they explain.
Everything indicates that pure libertarians will reject the package of laws, but from space they made it known that to accompany or not the debt they will wait for the instructions given to them by the Minister of Economy of the Nation, Luis Caputo.
The negotiations with the opposition groups are led by the Minister of Economy, Pablo Lopez; the Secretary General of the Interior, Agustina Vila; the lieutenant governor Veronica Magario; Warrior; the head of the Budget Committee, John Paul of Jesus; and the presidents of the Union for the Homeland, Tinganelli and Teresa Garcia. The negotiation is open and the end remains uncertain.
The support of the CGT and the two CTA
In this scenario, the national Board of Directors of the CGT and the Buenos Aires Executive Councils of the Central Workers of Argentina (CTA-Workers) and the Central Workers of Argentina (CTA-Autonomous) expressed themselves in favor of the approval of Kicillof’s package of laws.
The CGT issued a statement whose title is “PBA Budget: the provinces need the approval of the Law of Laws”in which it was requested that the initiatives be approved. “At a time when provincial governments must make up for the shortcomings of a National State that withdraws from its obligations, local budgets are more necessary than ever,” it was indicated.
Furthermore, it was argued that “in a federal country, the provinces need their budget and, in this case, Buenos Aires needs it, as well as debt and the tax law. It is the tool that allows them to execute their public policies and their social development at the provincial and municipal level” and it was added that the law of laws “guarantees the salaries of workers, job positions, the continuity of infrastructure works and investment in security.”
In the same tone, the secretary of the CTA-de Los Trabajadores, Roberto Baradeland the general secretary of the CTA-Autonomous, Oscar de Isasistressed the importance of “committingly assuming the challenge of unity in action and challenging the Buenos Aires population with a programmatic agenda with political initiatives that allow the participation of different union, political and social sectors of our province.”
Both centers expressed the need “to have the approval of the provincial budget sent by the Executive Branch and all the legal instruments that allow the Buenos Aires government to face Milei’s financial suffocation measures and thus be able to execute public policies that benefit workers and workers and all the people of Buenos Aires.”
Other supports
The Minister of Infrastructure of Buenos Aires, Gabriel Katopodisrequested this Thursday the sanction of the law: “Our province has to define its budget, order the taxes that will continue to finance the policies that the people of Buenos Aires voted for and require, and authorize the credits that are needed to pay the debts that left Vidal’s Macri management,” he posted online.
“It is a package of three laws that I am convinced will be able to be approved in full, building the necessary consensus before the end of the year. Governor Kicillof sent the projects 40 days ago and, unlike Milei who wants discretion outside the law “needs these instruments to continue complying with each of the citizens of Buenos Aires,” he concluded.
The mayor of Florencio Varela expressed himself in the same vein, Andrew Watsonwho stated: “I firmly support the budget promoted by Governor Kicillof and the bills he presents in the Buenos Aires Legislature,” and added that the regulations are fundamental “to protect the rights of citizens, guarantee the continuity of the works and ensure investment in security”.
“As for the fiscal aspect, in real terms, the tax burden is not increased in any sector,” he highlighted and stated that “the debt does not increase the financial obligations acquired, it only covers the maturities of inherited commitments.”
Then, he maintained: “The simultaneous approval of these instruments is essential to manage in a context of crisis caused by the Presidency of the Nation. The consequence of rejecting the regulations sent is a strong adjustment that leaves the Province at risk of default.”
In the press conference that he led last Monday, the Minister of Government, Carlos Biancoasked the opposition for “a little hand” to unblock the initiatives and remarked: “This is not an adjustment budget, but rather an expansion one. The project foresees an investment for public works, purchase of patrol cars, ambulances and promotion of production. Our officials, the head of ARBA, Christian Girardand the Minister of Economy, Pablo Lopezthey have explained it. “There is no debate regarding the content with the opposition but rather a clear political discussion.”
“The government needs these elements to consider having a normal, reasonable and calm management. We ask the opposition to vote for it. The requests that the mayors make to us about sewers, patrol cars and public works are tied to that. Without a budget, it will be very difficult to have all that,” he concluded.
What is contemplated in Budget 2025
The law of laws for 2025 contemplates expenses for more than 34 billion pesosforesees a primary deficit of 628,680 million pesos and a financial deficit of 1,486,271 million.
The 2025 Budget contemplates a investment of 1.4 billion pesos for social inclusion; 1.2 billion 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 Survey of Market Expectations (REM) expects an inflation of 35% by 2025. In addition, those who are up to date will receive a 15% reduction in your 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.
Source: Ambito
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