The Limited Times

Now you can see non-English news...

Economy ratified the adjustment to the provinces: eliminates the teaching fund and will audit all public works underway

2024-03-06T23:45:40.489Z

Highlights: Economy ratified the adjustment to the provinces: eliminates the teaching fund and will audit all public works underway. Caputo's team terminated the fund for teachers. The cut in transfers and subsidies continues. Peronism retained control of the federal tax commission. Catamarca: "They killed each other and blocked him. The JXC proposed one of their own and one of those present blocked him," summarized one of the ministers. The meeting took place within the framework of the Federal Tax Commission (CFI), a body for control, supervision and advice.


Caputo's team terminated the fund for teachers. The cut in transfers and subsidies continues. Peronism retained control of the federal tax commission


Before the call to the governors to negotiate a

fiscal pact

in exchange for the approval of laws, the Secretary of the Treasury,

Carlos Guberman,

ratified this Wednesday the fiscal adjustment to the jurisdictions during a meeting with the Ministers of Economy of the 24 provinces ( including CABA), a definition that fuels the

climate of tension

due to the cut of funds and co-participation.

"The Teacher Incentive Fund no longer exists

," said the official, referring to the

$300,000 million

that the Nation sent until last year from Fonid to pay salaries to teachers.

Although the message was not surprising, it added more pressure to the most committed provincial treasuries and the Ministry of Education, in the midst of the

strike

that paralyzes classes in many districts.

In the meeting on the ninth floor, which lasted from 2 to 4 p.m., Guberman outlined a panorama of

strong restrictions

, in line with the program that the Minister of Economy agreed with the Monetary Fund.

This is the search for fiscal balance through cutting transfers to the provinces, public works and subsidies for transportation and energy.

According to an IARAF report, the provinces received

$18.25 billion in funds paid by non-automatic transfers

in February , which implies a

real drop of 88% year-on-year

.

In this way, they stopped receiving almost 9 out of every 10 pesos that the Nation sent them on a discretionary basis and 12 provinces would have received $18 million or less throughout the month.

A change

In this framework, the Secretary of the Treasury indicated that there will be a "punctual analysis" of the public works projects initiated and there will be an audit of what was done.

He also promised that progress will be made with financing from multilateral organizations that has already been approved and that subsidies will be on demand, so governors will have to define whether to increase subsidies or rates.

Guberman received the provincial ministers in a week in which Caputo began to control by decree a good part of the

29 trust funds

, within which

transportation represents 40%

of the almost $ 2 billion of resources allocated to the trusts.

"What is not by law will not continue

," the former official of the Ministry of the Interior under the management of Rogelio Frigerio told them.

Another point that emerged at the meeting was the stoppage of funds to finance the deficit of the 13 provinces that did not transfer their

pension funds

to the Nation.

The official told them that the payments will be released once an

audit of the accounts since 2018

is carried out and asked for time for the new management of ANSES to adapt, after the ejection of Osvaldo Giordano from Córdoba.

The meeting took place within the framework of the Federal Tax Commission (CFI), a body for control, supervision and advice and interpretation of financial relations between the 23 provinces, CABA and the Nation.

The meeting was planned in advance, but Javier Milei's call for a federal pact made the conversation turn towards cutting funds to the provinces.

Some ministers see the call as a step back from the President after accusing the governors who blocked his reforms of being "traitors."

The Government offers as a bargaining chip a tax relief and an increase in the Income Tax for workers, but in the provinces they assure that this collection fund no longer exerts the same power of attraction as last December.

On the one hand, the advance of inflation and parity payments causes new workers to join the regime.

And, on the other hand, the

social climate

increasingly complicates the removal of that benefit.

However, they recognize that Caputo has a letter to discipline 12 provinces, which is the withholding of co-participation resources for debts with ANSES, as happened with Chubut.

However, what generated the most tension was the attempt to renew the authorities of the commission, a body that is considered the

"arbitrator of co-participation"

and is chaired by Alejandra Nazareno, Minister of Finance of Catamarca.

The discussion broke out when the JXC provinces proposed one of their own and Peronism blocked him.

"They killed each other," summarized one of those present.

Source: clarin

All business articles on 2024-03-06

You may like

Trends 24h

Latest

© Communities 2019 - Privacy

The information on this site is from external sources that are not under our control.
The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.