Title: Government Decree 192/2024 Eliminates Funds for Buenos Aires: Impact on Socio-Urban Integration Fund (FISU)

2024-02-26 03:54:00

Tonight, the Executive Branch published in the Official Gazette the decree 192/2024 which repeals article 4 of Decree No. 735 of September 9, 2020 through which the Government of Alberto Fernández created the fund for the strengthening of Buenos Aires with resources obtained from the review of the amounts granted to the City for the transfer of Security.

Days ago, the Buenos Aires governor, Axel Kicillof, complained to the Minister of Economy, Luis Caputo, through a letter sent by Pablo Lopez, head of finance of the province, “the immediate payment of the balance owed for November and December 2023 and January 2024 related to the Fund for Fiscal Strengthening of the province of Buenos Aires.”

In the letter, López requested the payment of the unpaid sums and its corresponding update of what was agreed in the Complementary Agreement to the compensations of the 2017 Fiscal Consensus “just as we demand the immediate normalization of the Teacher Incentive Fund and the Interior Compensation Fund, regarding transportation.”

“The regularization of these payments is essential for the normal functioning of provincial public management,” they said from Buenos Aires.

Milei’s response came tonight with the elimination of the Fund for Fiscal Strengthening of the Province of Buenos Aires through the aforementioned decree, further aggravating the dispute with the provincial authorities.

The Government cut resources to the Socio-Urban Integration Fund

In parallel, tonight the national administration also advanced with the modification by decree of the PAIS Tax, created in 2020 by Alberto Fernández.

Decree 193/2024 signed by Mercy, his chief of staff, Nicolas Posse, and the minister Caputo, ordered to modify the allocation of funds corresponding to 30% of what was collected from the aforementioned tax, mainly affecting the income of the Socio-Urban Integration Fund (FISU)the fiduciary tool used by the previous government for the urbanization of popular neighborhoods.

Starting this Monday, the FISU that until yesterday He received a third of that 30%, now he will see his financing reduced to a minimum since he will barely receive 1%.

“The specific allocation of thirty percent (30%) established in section b) of article 42 of Law No. 27,541 on Social Solidarity and Productive Reactivation in the Framework of the Public Emergency and its modifications will be distributed as follows: a . To the URBAN SOCIAL INTEGRATION FUND (FISU), created by Decree No. 819 of December 5, 2019 within the framework of Law No. 27,453 on the Property Regulation Regime for Socio-Urban Integration and its amendments, for the financing of social housing works: one percent (1 %). b. To economic infrastructure works: ninety-four percent (94%). c. To promote national tourism: five percent (5%),” the decree states.

What is the Socio-Urban Integration Fund (FISU)

He FISU became the center of the discussion in recent weeks after the government itself pointed it out as a “black box” of the social leader. Juan Grabois. However, in the last few hours, the current Secretary of Socio-Urban Integration, Sebastian Pareja, He stated that no evidence was found to justify these accusations and valued the use that was given to the FISU during the previous administration.

“In the short time that I have been here, I have spoken with mayors of different political and political backgrounds. I have not found anyone complaining or criticizing; What’s more, if it was not the only secretariat that worked well during Alberto Fernández’s government, it hits home,” he stated and added: “What I am seeing today is more than 1,200 works in progress with a budget of more than 80% executed.”

Grabois assured that the accusations came from Caputo To generate “a discredit operation” against him and “remove budget for popular neighborhoods.”

Pareja explained that he met with representatives of the Inter-American Development Bank (IDB)where he was informed that “they promote as an example the work carried out by Miño” and “especially the Mi Pieza program.”

The IDB published an 81-page work titled “Impact of Self-Building Housing Improvement Programs: Evidence for Popular Neighborhoods in Argentina.” The Argentine Catholic University (UCA) also put together a specific report on Mi Pieza, with positive conclusions.

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