Dispute between nation and provinces for tax pressure: the truth behind the tax and expenses

Data on the expense and tax pressure of the provinces and the nation show that, both subnational and federal government, They still have pending accounts As for the Fiscal planning.

In fact, It is not the exclusive assets of the libertarian administration of the policy of reduction of the expense and low of taxes. The governors of “La Casta” also made their contribution. But in both there are pending accounts.

According to a report from the Mediterranean Foundation, Tax pressuredefined as the relationship between collection and Gross Domestic Product (GDP), rose between 2000 and 2024 44% in the case of the nation and 48% for the provinces.

Instead, the weight of spending On GDP rose 25% in the case of the nation between 2000 and 2024, while that of the provinces increased 21%.

“Despite the strong fiscal adjustment observed in 2024, there is still enough to correct in terms of spending and long -term taxes, in order to improve the competitiveness conditions of local production,” says the report.

How did expenses and fiscal pressure evolve?

The data reveal that the provinces have gone repeating the pattern of fiscal behavior of the nation;

• The weight of national expenditure on GDP rose 101% between 2000 and 2015, dropped 38% between 2015 and 2024 (most of the adjustment occurred in 2024) and still records an increase of 25% between 2000 and 2024.
• The tax pressure in Nation rose 67% between 2000 and 2015, fell 14% between 2015 and 2024 and still exhibits a 44% increase between 2000 and 2024.
• The weight of the provincial expenditure on GDP rose 47% between 2000 and 2015, dropped 17% between 2015 and 2024 and denotes an increase of 21% between 2000 and 2024.
• The tax pressure in provinces increased 54% between 2000 and 2015, then decreased 4% between 2015 and 2024, and still exhibits an increase of 48% between 2000 and 2024.

Taking into account both provincial and municipal taxes, Misiones presents the greatest effective tax pressure (12.9% of the PBG)followed by Tucumán (8.0%) and Buenos Aires (7.2%). Among the most populated provinces, order is Buenos Aires (7.2%), CABA (6.3%), Córdoba (6.2%), Mendoza (6.2%) and Santa Fe (5.3%) .