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Politics The Government eliminated the Fund for the Fiscal Strengthening of the Province of Buenos Aires - Infobae

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The Government eliminated the Fund for the Fiscal Strengthening of the Province of Buenos Aires - Infobae


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February 26, 2024

It had been created during the administration of Alberto Fernández after a police protest against the government of Axel Kicillof, and marked a point of conflict between Casa Rosada and Horacio Rodríguez Larreta, because it was financed by the removal of a percentage of the federal co-participation funds. corresponding to CABA

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Javier Milei and Axel Kicillof

Javier Milei advances with the adjustment and with the confrontation with the governors. In the midst of the dispute with the Chubut native, Ignacio Torres , the Government opened a new focus of conflict by eliminating the Fund for the Fiscal Strengthening of the Province of Buenos Aires with a clear message to the administration of Axel Kicillof .

Through Decree 192/2024 , published today in the Official Gazette with the signatures of the President, the Chief of Staff, Nicolás Posse , and the Minister of Economy, Luis Caputo , the elimination of the fund that had been created during the administration is established. of Alberto Fernández , in the midst of the pandemic, with resources obtained from the removal from CABA of a percentage of the funds corresponding to the federal co-participation.

The measure, which marked a point of conflict between Casa Rosada and the then head of the Buenos Aires Government, Horacio Rodríguez Larreta , had been announced after a police protest for salary improvements against the Kicillof management . “We have to look for resources in a complicated fiscal situation. We are diverting many State resources to the most unprotected sectors,” Alberto Fernández stated at that time.

In short, it was about removing one point from the co-participation of the Federal Capital and transferring more than 30 billion pesos to the province of Buenos Aires .


Alberto Fernández announces the removal of a co-participation point from CABA in 2020

In the aforementioned decree, the Government argued that "the severity of the crisis puts at risk the very subsistence of the established social, legal and political organization, affecting its normal development in pursuit of the common good." At the same time, he reiterated that “no other national administration has received an institutional, economic and social legacy as critical as that received by the current one , so it is essential to adopt measures to overcome the emergency situation created by the exceptional economic and that the Nation suffers, especially as a consequence of a set of interventionist decisions.”

"In order to solve the enormous number of problems derived from the inheritance that the outgoing administration left to all Argentines, it is necessary to carry out a fiscal adjustment in the National Public Sector of 5 points of GDP and, at the same time, resolve the situation of the remunerated liabilities of the Central Bank of the Argentine Republic, which are responsible for 10 points of its deficit,” it was added.


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Axel Kicillof, governor of the province of Buenos Aires
“Consequently, there is no alternative solution to an urgent fiscal adjustment that puts public accounts in order, this being an indispensable condition for the macroeconomic stabilization that our country requires,” Casa Rosada continued, pointing out that “the fiscal situation of the Provinces and the City “It has been less restrictive at the expense of the discretionary transfers that the National Government has made . ”

In the following paragraph, the Milei Government raised its level of confrontation with Axel Kicillof by stating that “the aforementioned Fiscal Strengthening Fund of the Province of Buenos Aires affected the general interests of the Nation as a whole, depriving the National State of resources necessary for the organization of public accounts , which is why it is necessary to repeal article 4 of Decree No. 735 of September 9, 2020."


The collection of this fund had been one of the demands that Kicillof, through his Minister of Economy, Pablo López, raised days ago with Caputo demanding the “immediate payment of the balance owed for the months of November and December of the year 2023 and January 2024″.

The Government Eliminated the Fund for Fiscal Strengthening of the Province of Buenos Aires by fvitola on Scribd


The Government modified the distribution of the PAIS Tax​

On the other hand, the Executive Branch moved forward this Monday with modifications in the distribution of the percentages of the PAIS tax . Through Decree 193/2024 , it was made official that the specific allocation of 30% established through this tax will have a change: the Socio-Urban Integration Fund (FISU) , used for the urbanization of popular neighborhoods, will be allocated for the financing of social housing works barely 1%.

The Government, meanwhile, clarified that 94% will be allocated to economic infrastructure works and the remaining 5% will be allocated to the promotion of national tourism .

The Socio-Urban Integration Fund was created by Decree 819/2019 at the end of the Mauricio Macri government. Its objective was to finance socio-urban integration projects for Popular Neighborhoods that are registered in the National Registry of Popular Neighborhoods (ReNaBaP) and create Lots with services. According to its website, the Fund currently depends on the Ministry of Human Capital.

Regarding these cooperatives, with minimal exceptions, such as some left-wing organizations, they belong to the social movements grouped in the Popular Economy Workers Union (UTEP), made up of social leaders such as Juan Grabois , Emilio Pérsico , Daniel Menéndez , among others.

The FISU funds were fed by the PAIS tax after what was dictated through law 27,541. According to article 42 of that provision, the Executive Branch had to distribute the proceeds of said tax in the following way: 70% allocated to ANSES and PAMI programs and benefits. And 30% to be distributed among the FISU, economic infrastructure works and the promotion of national tourism.

Said regulations were complemented, among others, by Decree 184/2020 in which the Executive, within the framework of the article cited above, defines that 30% be divided as follows: 30% to FISU , 65% to economic infrastructure works and 5% to promote national tourism.

That is, 9% of the total tax was allocated to the Socio-Urban Integration Fund. In 2023, the amount it reached was almost six billion pesos .

BUENOS AIRES PROVINCE FISCAL STRENGTHENING FUND by fvitola on Scribd



 
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