Through automatic co-participation transfers, complementary laws and compensation, the province of Santa Fe received $585,367 million from the central government in the first quarter of the year, a nominal 204.1% more than in the same period of 2023, but a real value of -18 .3% if the effect of inflation is discounted.
This is revealed by a new report from the Argentine Institute of Fiscal Analysis (Iaraf), which indicates that until March – to all the provinces plus the Autonomous City of Buenos Aires – these transfers fell in real values by an average of 190% year-on-year.
If only automatic transfers are counted, the Gray House completed a quarter with $561,725 million remitted by the legal system, 212% more in nominal terms but with a drop of -16.1% in real values. In terms of complementary laws, Santa Fe received 23,641 million, 88.1% more in the quarter but with a year-on-year drop of -49.5% in the period.
If only March is counted, Santa Fe received $185,399 million, 191% more than in the same month of 2023, but with a drop of -26.2% if the inflationary effect is discounted. Only due to complementary laws and compensation, the Santa Fe administration received $7,050 million, 91.8% more than in the third month of last year, which represents -51.4% in real terms.
The Iaraf report explains that “in the month of March 2024, the National government sent the consolidated provinces plus CABA $2,221,000 million in co-participation, special laws and compensation, compared to $782,000 million sent during the same period of the previous year. .
“That is to say – he compares – that a nominal variation of 184% was observed. Discounting the inflationary process of the period, this would translate into a real fall of 28%.” The figure implies a decline of 19% in the quarter.
The report details that “This fall is mainly explained by the poor performance in income tax collection (-41% real year-on-year) and VAT collection (-18% real year-on-year). according to information provided by DNAP. Overall, VAT and IIGG collection would have registered a real year-on-year drop of 26.5%.
The causes accumulate the effects of the economic recession such as the impact of the elimination of the fourth category in income tax collection, ordered by Sergio Massa and the Peronist legislators, with the positive vote of Milei and his bloc.
Iaraf adds that “in relation to February, the combined collection of VAT and profits (which represents 54% of the total national collection) would have decreased by 11.6% in real terms. This drop would have been above the average of the last 5 years (-2.2%)”.
