Municipality will seek to sustain income and anchor revenue collection

2023-12-17 03:58:00

Mayor Daniel Passerini’s team has already spent its first week in office in the Municipality of Córdoba. It is a landing that already has several aspects to show, but is still settling in other ways. Because although there is a lot of continuity in this management, the truth is that there is also a change of names and functions, partly sought, partly agreed upon with the team of the governor and former mayor Martín Llaryora who took a good number of his close troops. to provincial management.

Thus, it might be said that there is a mix between continuity and new faces, many of which come from working in the day-to-day work of the Deliberative Council, where Passerini became strong in the previous 4 years.

New structure. Aside from the names, which were already made official last Monday, among the important developments is the incorporation of a Municipal Security and Community Prevention Secretariat (led by Claudio Vignetta) and a “super secretariat” of Public Administration and Human Capital which Sergio Lorenzatti will command.

Lorenzatti was Passerini’s right-hand man in the Council and before that municipal space he was director in the Undersecretariat of Cooperatives and Mutuals of the Province of Córdoba. Lorenzatti’s power will include the former Secretariats of Public Administration and Economy and Finance.

Economy and Finance (led by Guillermo Acosta, current minister of Llaryora) is “disaggregated into two undersecretaries: Finance and Budget, with the economist and advisor to the Deliberative Council Guillermo Pizarro; and Public Revenue, under the management of Magalí Díaz.

“The perspective that we all have, it is going to be a difficult, tough year. At the Muni we are proposing a certain austerity and control of spending because if the situation becomes complicated there will be a drop in the level of activity, fewer taxes will be collected and we will receive less from the Nation. It will not be easy. Hopefully we are wrong and hopefully in 6 months, as Milei says,” comments a municipal official.

Diagnosis and direction. These days, Passerini’s economic team is finishing knowing the fine management numbers to know how 2023 closes in terms of income, expenses, cash flow, debt and commitments with suppliers. From there, the detailed roadmap will be proposed with the numbers on the table to face what appears to be a very complex 2024.

There are, however, some definitions that go beyond the numbers. Perhaps one of the most important is the political and economic definition that can set the tone and direction of the management: “austerity and spending control, austerity and spending control,” is a slogan that will be repeated like a mantra during the first months.

And what will it be reflected in? Beyond specific areas there is an objective that the new management does not want to lose, and that is to maintain the ratio of salary expenses to total expenses in the order of 50%. Having achieved that number – a product of cutting overtime and additional non-remunerative hours since the pandemic – was one of the achievements that the llaryoristas most like to show off. And it is presented as the main challenge for Passerini’s management in view of growing inflation and a horizon of possible income contraction.

Along these lines, one of the key definitions will be that the increases and joint negotiations with Suoem establish a firm and particular parameter for what is to come: “it will have to be adjusted, expenses are being reduced, secretaries have been reduced. Public finances, at all levels, are like at home, you cannot spend more than you can afford. If the level of activity falls, the level of public income falls, one collects from the different activities,” they point out from the 6 de Julio Palace.

And they complete with the idea that salary increases will not accompany inflation, but collection: “not increasing beyond what collection increases is the most logical thing. If salaries impact me at 40% of income, let it be no more than that, because if income does not keep up with inflation at some point you will eat up the budget, let’s see what happens, it will be a difficult year.”

For this key negotiation, the officials have already been defined: Sergio Lorenzatti is the one who will command the dialogue from a political perspective with the Suoem, assisted by Guillermo Pizarro’s Budget Undersecretariat.

Economic management triangle
The former Ministry of Economy and Finance was absorbed by the Ministry of Public Administration and Human Capital, with Sergio Lorenzatti in its command. Inside, and in the economic area, two undersecretaries: Finance and Budget, by Guillermo Pizarro, and Public Revenue, by Magalí Díaz.

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