A new study on the transfer of funds to the provinces demonstrates the validity of the discretion with which the national government allocates budgetary resources.
In 2022, Córdoba, Mendoza, Río Negro and Jujuy were the most affected by capital transfers and real direct investment. A report from the Argentine Association of Budget and Public Financial Administration (Asap) highlighted that these four provinces received less money last year compared to 2021, amid a strong and silent adjustment of the items.
Mendoza and Jujuy have radical governments. The ruling party of Río Negro remained in tension with the national government for almost all of 2022 due to a difference in approaches on how to deal with the violence generated in the area by groups that claim to be Mapuche. In Córdoba, a Peronism governs that does not integrate the Frente de Todos because it does not identify with Kirchnerism.
The capital transfers that the Government makes to the provinces are destined, fundamentally, for potable water and sewerage projects, transportation, housing and urban planning, and education and culture. Direct real investment is directed to public works.
For both items, during 2022 the national government distributed a little over 600 billion pesos among the 24 jurisdictions. The figure was just 36% higher than in 2021, although inflation was around 95%. Within this framework of general adjustment compared to the previous year, four provinces saw their income decrease in relative terms.
To exemplify the crossed impact of both variables, the case of Mendoza is worthwhile: it received almost the same money as the previous year; but due to inflation, it is as if he had received half.
The other three districts mentioned fared worse: Río Negro received almost 10% less than in 2021; Jujuy, almost 9%; and the funds that arrived in Córdoba were reduced by more than three percentage points.
In return, there are provinces that benefited in an extraordinary way. Not only because their income increased compared to 2021, but also because the percentage increase exceeded inflation. For Santiago del Estero, shipments increased by 113%; and for Tucumán, 106%.
It is worth remembering that, until these days, Alberto Fernández’s Chief of Staff has been Juan Manzur from Tucumán. And that the Santiago government maintains a high commitment to Kirchnerism.
As discretion always leaves room for some surprise, the ASAP study highlights that the City of Buenos Aires received 119% more than in 2021. In other words, while the national government spoke publicly once morest the “opulence” of Buenos Aires and He refused to reach an agreement for co-participating funds in the mediation established by the Supreme Court, in another way he gave him a large amount of money.
Thus, discretion, which is always factious, is functional and Machiavellian even with adversaries. For all these reasons, it is urgent to eliminate it from the public administration.