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Politics The Government ordered an almost total cut to the Trust Fund managed by social movements - Infobae

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The Government ordered an almost total cut to the Trust Fund managed by social movements - Infobae

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February 26, 2024

The Executive Branch decided changes in the way it distributes the income collected by the Country Tax

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This Monday, the Executive Branch ordered modifications in the distribution of funds collected by the PAIS tax - which is charged on foreign currency purchase operations.
Through decree 193/2024 , he decided on an almost total cut in the amount that was destined for the Socio-Urban Integration Fund (FISU) managed by social movements.

To understand the scope of the pruning, we must go back to Law 27,541, which had allocated the transfer of 30% of the tax collected to finance social housing works through the FISU, economic infrastructure works and the promotion of tourism.

Decree 184/2020 issued by Alberto Fernández defined priorities and established 30% to be allocated to FISU, 65% to economic infrastructure works and 5% to tourism.

With the changes ordered today by Javier Milei, only 1% will be transferred to the FISU and 94% for economic infrastructure works. The promotion of tourism will continue with the same 5% of the produced.

In mathematical terms, this means that of the 9% of the total produced by the Country Tax that the social movements received, they will now receive a nominal percentage of just 0.3 percent.

BUENOS AIRES PROVINCE FISCAL STRENGTHENING FUND by fvitola on Scribd


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 .

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The Ministry of Human Capital is in charge of the FISU
This is a fund that in recent days has been under the Government's sights as a result of an audit where it was investigated whether there were irregularities in the management of the money. However, the Executive Branch itself clarified that so far the audit “has not found any acts of corruption,” at least evident.

As this media learned from official sources, since the creation of the FISU, 1,278 integration works have been carried out in popular neighborhoods, reaching 5,060 settlements with housing works in which 6,517 interventions were carried out for an amount of almost 500 billion pesos, exactly $480,611,383,294.59 during the last four years. Almost 70% of them were distributed to “civil society organizations.”

The ongoing audit highlighted that a large percentage of the works were sidewalks and cordons, that the contracts - as in the tenders for food and oncological medicines - were directed , in this case, cooperatives linked to the social movements of the UTEP .

Based on these investigations, the Government decided to establish the FISU Executive Committee , which will be preceded by Sebastián Pareja , a man of close confidence to the President, since he was his political leader in the province of Buenos Aires.

Once the audit that supervises the destination of the billions of pesos destined for these works and in which piquetera companies and cooperatives intervene, the intention of Pareja - who holds the same position as Miño - is to pay - if everything is in order - all of the pending certificates for the year 2023, whose documentation involves about $20,000 million .
 
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