Javier Milei once again set his sights on
trust funds
, a mass of resources close to $3 trillion that he seeks to eliminate as
part of the "black boxes" of politics
.
“I am going to make a decree that eliminates all trusts, that makes many nervous,” the President shot on Wednesday night in an interview with LN+.
The Government resumed the offensive after the fall of the Omnibus law in Congress and the conflict that broke out with the governors last week.
One of the points that blocked approval was subsection "h" of article 4 of the project, which gave Milei the power to
"transform, modify, unify or eliminate specific allocations, trusts or public trust funds."
Practically, all administrations used - or tried to - trust funds or trusts.
The reason is its
lack of transparency
, the lack of specific objectives and that in some cases it ended up functioning as a
mechanism to divert public funds from parliamentary debate
to the detriment of other items, according to specialists.
The first
were created in 1995
during the administration of
Carlos Menem
under the protection of privatizations and fiscal adjustment through the transfer of shares of YPF, Banco Hipotecario, profits of Lotería SE and loans with the rest of the world to assist the financial sector in the face of the threat of economic crises and enable the entry of private capital into the public infrastructure business.
Later, funds financed with the direct transfer of
funds from the Treasury or the creation of a tax
and the transfer of its collection for a specific purpose (public works in infrastructure or housing, subsidies) were added, while today
those that are financed with transfers of funds from
the national administration budget.
Thus, according to the Congressional Budget Office (OPC),
trusts increased from 15 in 2012 to 28 in 2023
, with a
greater rate of growth
in resources
since 2018 during Mauricio Macri's administration.
These
went from 1.12% of GDP in 2012 to 2.08% in 2021
, while expenses were reduced by almost half, which generated a significant expansion of its financial surplus.
In the 2024 Budget sent by Sergio Massa in September of last year to Congress and which was never discussed,
29 trust funds were projected for this year with resources of $ 3 trillion (about 1.6% of GDP)
, more than half financed with transfers from the Treasury and the rest with taxes and property income (interest on credits, investments and Treasury bills).
This mass of funds is equivalent to about US$ 3,000 million, much less than the US$ 20,000 million estimated by Milei in the last few hours, a calculation that would include, in addition to the trusts, 34 state companies and autonomous entities such as the AFIP or the PAMI, as stated by the official deputy José Luis Espert.
Even so, the amount is still significant.
After cutting transfers, educational funds and transportation to the provinces, Milei now has another
button at his disposal to pressure the governors
,
municipalities and companies
that receive subsidies from the trusts.
As an important part of these funds arises from the Budget, the Minister of Economy,
Luis Caputo
, is the one who transfers the resources and has the
power to defund them
.
The 9 most relevant trust funds:
1) Of the Transportation Infrastructure System (FFSIT)
.
In 2001, a tax on diesel
was created by decree
with the aim of establishing a trust for
infrastructure projects and the elimination or reduction of tolls
, but today it is intended to
subsidize passenger transport companies
(buses and trains).
As of the third quarter of 2023, it received
$458,000 million.
2) PROCREATE.
Created by decree in 2012, it seeks to facilitate access to housing through mortgage loans and financial assistance.
As of the third quarter of 2023, it received
$98 billion.
3) Socio-Urban Integration (FISU).
It was created by law and a decree in 2019 to maintain fiduciary ownership of all the
properties identified in the National Registry of Popular Neighborhoods
in the Process of Urban Integration (RENABAP) and those necessary or convenient to carry out
social housing
works in neighborhoods .
popular among municipalities, provinces and social organizations.
As of the third quarter of 2023, it received
$105,000 million
, mostly
from the PAIS Tax.
4) For Social Housing.
It was created by law in 2017 to finance current social housing and basic infrastructure programs for low-income households, through a system of individual and/or collective credits.
As of the third quarter of 2023, it received
$161 billion.
5) Productive Development (FONDEP).
A 2018 law provided for facilitating access to financing for projects that promote investment or contribute to the development of value chains in strategic sectors to sustain activities and companies with high technological content.
As of the third quarter of 2023, it received
$160,000 million.
6) Argentine Guarantees (FOGAR).
The purpose of this fund is to grant guarantees in support of those issued by mutual guarantee companies, and to offer direct and indirect guarantees, in order to improve access to credit for companies that carry out activities in the country.
As of the third quarter of 2023, it received
$219 billion.
7) For Residential Gas Consumption Subsidies (FFGAS).
Created in 2001, its purpose is to finance
tariff compensation for the Patagonian Region
, the Malargüe department of the Province of
Mendoza
and the Region known as "
Puna"
, which the zonal distributors or subdistributors of natural gas and liquefied petroleum gas for domestic use , must receive from the application of differential rates to residential consumption.
As of the third quarter of 2023, it received
$78 billion.
8) Subsidies for Residential Liquefied Petroleum Gas Consumption.
By law in 2005, provision was made to guarantee access to bottled Liquefied Petroleum Gas (LPG) for low-income users.
As of the third quarter of 2023, it received
$61 billion.
9) Provincial Development.
It was established by decree in 1995 to assist and finance development programs, increase the quality of benefits and strengthen the sectors of the real economy, education, justice, health and security and the consolidation of the fiscal and financial situation.
Likewise, according to the Permanent Complementary Budget Law of 2014, it assists the provinces and CABA to address financial deficits and regularize treasury arrears in respect of salaries and essential services.
As of the third quarter of 2023, it received
$127 billion.
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