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Federal participation: winning and losing provinces based on the number of inhabitants

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Federal participation: winning and losing provinces based on the number of inhabitants

Last year, the provinces and the city of Buenos Aires (CABA) received on average $298,000 in actual transfers per capitaon behalf of the National Government on the subject of co-participation, special laws and compensation, an IARAF report stands out.

Of the 24 jurisdictions, dten received above-average real transfer amounts per capita, While the rest did below. The five jurisdictions that received the highest number of real transfers per capita were: Tierra del Fuego, Catamarca, Formosa, La Rioja and La Pampa. The five that received the least were: CABA, Buenos Aires, Mendoza, Córdoba and Neuquén.

Among high-income, high-population provinces, Santa Fe was the jurisdiction that received the most royal transfers per capita in the year 2022, with an approximate amount of $213,000. Following within the group are Córdoba ($185,000), Mendoza ($172,000), Buenos Aires ($113,000), and CABA ($61,000).

In the group of high-income, low-density jurisdictions, Tierra del Fuego received the largest number of real transfers per capita for the year, with approximately $534,000. Within the group, La Pampa ($430,000), Santa Cruz ($397,000), San Luis ($344,000), Río Negro ($274,000), Chubut ($222,000), and Neuquén ($203,000) follow. Income and high-density provinces, Catamarca was the jurisdiction that received the most real per capita transfers in 2022, with approximately $521,000. Following within the group are Formosa ($498,000), La Rioja ($442,000), San Juan ($339,000), Santiago del Estero ($326,000), and Salta ($225,000).

When looking at the group of low-income, low-density jurisdictions, Chaco was the one that received the most real transfers per capita in the year 2022, with approximately $365,000. They are followed, within the group, by Jujuy ($295,000), Entre Ríos ($284,000), Corrientes ($263,000), Tucumán ($232,000), and Misiones ($219,000).

According to IARAF data; this year, the provinces and the CABA would receive an average of $300,000 per capita real transfers. In the calculation, it was assumed that CABA will actually receive the shared transfers during 2023 according to the sentence of the Supreme Court of Justice. In addition, the average annual population growth rate between the last two census years, 2010 and 2022, was used to estimate each jurisdiction’s population for the year 2023.

Of the 24 jurisdictions, ten would receive above-average real per capita transfer amounts, while the rest would receive real transfer amounts per capita inferior. The five jurisdictions that will receive the most transfers are: Tierra del Fuego, Catamarca, Formosa, La Rioja and La Pampa. The five that will receive the fewest real transfers per capita are: Buenos Aires, CABA, Mendoza, Córdoba and Neuquén

It is important to highlight that the growth in average real per capita transfers, which grew by $2,000 between 2022 and 2023 in December 2022 currency, is the product of the increase in the real per capita share that CABA would receive as a result of the interim measure, since the rest of the jurisdictions would receive real amounts equal to those of 2022.

Santa Fe would be the jurisdiction receiving the most real per capita transfers in 2023, with an approximate amount of $213,000. Within the group, Córdoba ($184,000), Mendoza ($172,000), CABA ($128,000) and Buenos Aires ($115,000) follow.

Finally, the study highlights that “by comparing the trend of average transfers and their dispersion in the different groups of jurisdictions, in the year 2022 it emerged that the jurisdictions low-income, high-density communities received the highest average per capita transfers, which was $391,000 with a dispersion of 26.7%.

“By 2023, low-income, high-density provinces would receive the highest transfers on averagethey would do it to the tune of $391,000 with a 26.6% dispersion. Then would follow the high-income, low-density areas, which would receive an average amount of $340,000, with a dispersion of 31.8%, which would be the highest among the groups. Low-income and low-density jurisdictions would receive an average amount of $277,000. That figure. shows a dispersion of 17.4%, the lowest among the groups. Finally, high-income, high-density jurisdictions would receive the lowest average real transfers per capita, amounting to $162,000, a dispersion of 22.3%, 14.5 percentage points less than in 2022-

Source: Clarin

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