Before the call to governors to negotiate a fiscal pact In exchange for passing laws, the Secretary of the Treasury, Carlos Gubermann, ratified this Wednesday the fiscal adjustment of the jurisdictions during a meeting with the Ministers of Economy of the 24 provinces (including the CABA), a definition that fuels the climate of tension due to cuts in funding and co-participation.
“The Teacher Incentive Fund no longer exists”the official said in reference to the $300,000 million which the Nation sent until last year from Fonid for the payment of teachers’ salaries. While the message was not surprising, it added further pressure to the busiest provincial treasuries and the Ministry of Education, in the midst of strike which paralyzes classes in many districts.
In the meeting on the ninth floor, which lasted from 2pm to 4pm, Guberman outlined an overview of the strong restrictions, in line with the program agreed by the Minister of Economy with the Monetary Fund. It involves the search for fiscal balance through cutting transfers to the Provinces, public works and subsidies for transport and energy.
According to an IARAF report, the provinces received it in February $18.25 billion in funds paid via non-automatic transferswhich implies a real decline of 88% year-on-year. In this way, they stopped receiving almost 9 out of 10 pesos that the nation sent them on a discretionary basis and 12 provinces would have received 18 million dollars or less during the month. A change
In this context, the Secretary of the Treasury indicated that there will be a “punctual analysis” of the public works projects launched and that there will be an audit of what has been done. He also promised that progress will be made with funding already approved by multilateral organizations and that subsidies will be on demand, so governors will have to determine whether they will increase subsidies or tariffs.
Guberman received the provincial ministers in a week in which Caputo began to control a large part of the territory by decree 29 trust fundsin which transport represents 40% of the nearly $2 billion in resources allocated to trusts. “What is not provided for by law will not continue”‘said the former Interior Ministry official under the direction of Rogelio Frigerio.
Another point that emerged from the meeting was the blocking of funds to finance the deficit in the 13 provinces that have not transferred their pension funds to the Nation. The official told them that the payments will be released once a year audit since 2018 and asked for time for the new ANSES leadership to adapt, following the expulsion of Osvaldo Giordano from Córdoba.
The meeting took place within the framework of the Federal Tax Commission (CFI), a body for control, supervision, consultancy and interpretation of financial relations between the 23 provinces, the CABA and the Nation. The meeting had been scheduled in advance, but Javier Milei’s call for a federal pact meant the conversation turned to cutting funding to the provinces.
Some ministers see the call as a step backwards by the president after accusing governors who blocked his reforms of being “traitors.” The Government offers a tax relief and an increase in personal income tax for workers as a bargaining chip, but in the province they assure that this collection fund no longer has the same power of attraction as last December.
On the one hand, the advancement of inflation and equal payments induces new workers to join the scheme. And, on the other hand, the social climate This increasingly complicates the suppression of this benefit. However, they recognize that Caputo has a disciplinary letter in 12 provinces, which consists in withholding debt sharing resources with ANSES, as happened with Chubut.
However, what generated the most tension was the attempt to renew the competences of the commission, the body considered the “co-participation referee” and chaired by Alejandra Nazareno, Minister of Finance of Catamarca. The discussion erupted when the JXC provinces proposed their own and Peronism blocked it. “They killed each other,” summed up one of those present.
Source: Clarin
