Base Law | Surgical transfers of Government funds to the provinces during the debate: the situation in Río Negro

Buenos Aires Correspondent

He Government of Javier Milei made surgical transfers of funds to provinces in the midst of the discussion of the Base Law and the tax packagealthough always within the context of continuity of adjustment. Río Negro was one of the benefited districts.

The Libertarian administration did canceling debts that had accumulated through different channels and using the distribution of Contributions from the National Treasury (ATN).

But at the same time it stopped the accrual of expenses for the month (recognized, but not paid), which reduces future obligations.

According to a report by the consulting firm Politikón Chaco, the discretionary transfers accrued during the past month were located at $35,855 million, which represents a drop of 89% compared to April 2023. This decrease is greater than the -61.7% in January, -66.4% in February and -78.9% in March. The consequence is less debt in the future.

The difference was in what was paid. The Ministry of Economy enabled payments for $68.16 billion82% less than a year ago, but almost double what was earned.

“It is the first time so far in 2024 that paid transfers exceed accrued transfers, a situation that shows two things: payment of previous debt on the one hand and brake on the accrual of resources during the month of analysis”, pointed out the work of the consultant.

In the overall balance, the largest payments are attributed to the Ministry of Health with $37,872 million equivalent to 62% of the total. But this mass was not distributed throughout the country but was concentrated in five hospitals in the province of Buenos Aires, the Garrahan in the City of Buenos Aires and the Néstor Kirchner High Complexity Hospital in El Calafate.

The other important item was “Educational Management and Socio-educational Policies” which demanded expenditures of $ 15,097 million. Although in this case the distribution was broader, the province of Buenos Aires stood out with a disbursement of $10.6 billion.

The political doll was detected in the payment of debts from the now defunct Teacher Incentive Fund (FONID). The allocated amount was for $3,671 million, but it only reached five provinces: Catamarca ($227 million), La Rioja ($397 million), Misiones ($1,476 million), Santiago del Estero ($1,525 million) and Corrientes ($46.7 million).


The Government made surgical transfers of funds to the provinces during the debate on the Bases Law: the political context


When analyzing the political situation, some particularities are observed.

The governor of Catamarca Raúl Jalil influences Senator Guillermo Andrada of Unión por la Patria (UxP), but the second senator Lucía Corpacci spoke out against the projects. In this case the question is whether UxP will be divided when voting. The third senator for the province, Flavio Fama, from the UCR, will vote according to the Radical Evolution bloc led by Martín Lousteau.

In Santiago del Estero Gerardo Zamora has direct influence over the three senators. Claudia Ledesma (his wife), Gerardo Montenegro and José Neder so his decision can be decisive.

In the case of CurrentsMercedes Valenzuela and Eduardo Vischi will follow the directives of Governor Gustavo Valdéz, while Carlos “Camau” Espíndola will not have to respond to political commitments.

In The Rioja, Ricardo Quintela will promote the negative vote of María López and Jesús Rejal. The third senator, Juan Carlos Pagotto, is an influential representative of La Libertad Avanza, which may partly explain the help received.

Missions deserves a separate paragraph. The official information available in April brought a surprise regarding the ATN: payments of $3,000 million were authorized, $1,500 for the Mesopotamian province and a similar figure for Santa Fe.

Misiones will also have an important specific weight in the vote in the Senate since the governor, Hugo Passalacqua, manages two senators: Carlos Arce and Sonia Rojas Decut. The third is a helping hand from the government: Enrique Martin Goerling Lara of the PRO.

Curiously, in April, the Minister of the Interior, Guillermo Francos, met with the provincial leader and Carlos Rovira, the strong man of the district. If you add what you obtained through ATN and Fonid, Misiones pocketed almost $ 3,000 million last month.

Although this series of actions does not show a substantive change in the official policy of cutting discretionary funds, it is evident that some decisions They are revealing of the nature of the “dialogue” that is carried out.


The Government made surgical transfers of funds to the provinces during the debate on the Bases Law: the situation in Río Negro


In the case of Río Negro was credited with $49 million, $41 million for “Educational Management” and 36 million for the credit from the International Bank for Reconstruction and Development. (IBRD).

For its part, Mendoza received $686 million with an accrual of $416 million in the month. Of that total, $409 million were for “Educational Management at the Primary level” and $233 million for the same IBRD loans that Córdoba received.

In the case of Cordova the national government He sent him $558 million in April, but the earnings for the month were only $19 million., which means practically zero recognition of expenses in the period. Of that total, $479 million corresponds to the so-called Universal Effective Health Coverage Project, which has a specific loan from the International Bank for Reconstruction Development (IBRD), whose agreement dates back to 2021, but which is disbursed in stages and which also arrived to the majority of the provinces. Obviously there was no ATN nor payment of overdue debts by Fonid.

 
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