05/07/2020 - 14:54
- Clarín.com
- Cities
In the framework of a fall in the collection that is estimated at 80,000 million pesos, finally this Thursday the Buenos Aires Legislature approved an Economic Emergency law for the City with effect until the end of the year. In this way, it enabled the Head of Government to reallocate budget items to face the coronavirus crisis. At the same time, a Special Commission for Inspection and Follow-up of measures and expenses to face the pandemic was created. In addition, the Executive must submit a monthly report on the processes and the reassignment of the items. The project received 38 votes in favor, 21 against and zero abstentions with 59 legislators present in the room or through the zoom platform.
The session was held again in the Golden Hall, where it is possible to keep a distance of 1.5 meters between each legislator. Despite the obligatory nature, not all of them wore face masks. Three deputies participated by teleconference : Ofelia Fernández (Frente de Todos) and María Luisa González Estevarena (Vamos Juntos), who have respiratory problems, and Cristina García (Vamos Juntos), who is pregnant.
The Law that declares the City in Economic Emergency will allow the Buenos Aires Executive to reallocate budget items . Also, review contracts and concessions , and create incentives or payment plans through the General Administration of Public Income (AGIP) for taxpayers to pay their taxes. In addition, the Buenos Aires Government will have the power to suspend or postpone the execution of programs , except in the areas of Health, Education and Human Development. This limitation was also added at the last minute at the request of the opposition.
During the morning of this Thursday, there was a state protest in front of the Legislature.
The Buenos Aires Government will have 30 calendar days to send the Legislature the modified programs, the amounts and the purposes of the expense. A supervisory commission made up of deputies may request information, make observations, proposals and recommendations, and request special reports on acts or contracts from the General Auditor of the City.
The Law establishes that the City Housing Institute will receive 35% of the profits generated by gambling. This is controversial, because by another law of 2017, the percentage should be 70%.
The official idea was that the Economic Emergency Law be approved in the session on April 30, but the initiative did not reach the venue due to lack of consensus. In addition to the aforementioned modifications, the Buenos Aires Government had to give up the most controversial point of the project: the staggered payment of the salaries of public employees .
The Buenosairean government calculates that, due to the impact of the quarantine on the local economy, the drop in collection will reach $ 80,000 million. This represents 17% of the $ 480 billion that was expected to be raised this year. The abrupt stoppage of economic activity caused a sharp drop in tax collection . In principle, it had a full impact on Gross Income, which normally contributes 75% of tax revenue. The collection for the Stamp tax also fell, which is charged when contracts are signed between private companies, such as the sale of real estate, and which represents 8% of the collection. At the same time, delinquencies in ABL (9% of revenues), Patents (5%) and other smaller taxes (3%) are expected to increase.
Buenos Aires Minister of Economy, Martín Mura, in the presentation of the Economic Emergency project before the Budget Committee of the Buenos Aires Legislature.
"An emergency law was unavoidable in this context, " stated legislator Sergio Abrevaya (GEN). "A month ago, I presented a project anticipating the drop in revenue, because people who are not working cannot pay taxes. in turn, if the City does not collect it has no way to finance its activities, hence the logic of indebtedness and the emergency of being able to reorder income. From the opposition, we proposed to the Government the need for a commission, we removed some articles such as the staggering in the payment of salaries and we agreed on the possibility that those who at this stage have raised well, such as the banks, can advance profits and help the City to finance the expenses it has to face at this time. "
"We are facing an extraordinary economic, social and health emergency and the tax collection of the City of April fell almost 40% in real terms. Therefore, it is necessary to establish a framework for the Executive to reassign items, prioritizing essential services to cross the pandemic and at the same time that the Legislature fulfill its role ", declared the deputy of UCR-Evolution, Juan Francisco Nosiglia.
For his part, Myriam Bregman (Left Front) questioned the superpowers that the law grants Rodríguez Larreta and distrusted that a commission could control him. For example, he raised what will happen if money earmarked for education is reallocated. And he warned: "By taking money from the items for social housing they are promoting the pandemic."
Cecilia Segura Rattagan (Front of All) called for the commission to be supervised not to become "a commission to validate impunity."