With less symbolism and more pragmatism, The government will put a magnifying glass on discretionary transfers to the provinces. At a meeting in Quinta de Olivos, Economy Minister President Alberto Fernandez warned that while the nation-state is running a deficit, all jurisdictions have a surplus in 2021 and will have it again this year.
Official sources indicated in this regard, “We cannot continue to transfer funds to pay current expenses while there are regions that have a fixed-term influence that allows them to cover the costs of public administration for a year.” Along these lines, they explained that “when the administration of Alberto Fernandez began, there were five provinces in red in their accounts, and today there are none left of them.”
In his opening lecture, Patakis stressed the need to chart a path to financial balance, And he said in the same speech: “The state should not spend more than it collects, nor should it save it.” From afar, it can be read as a reference to the provincial and municipal administrations that today have new money in public banks and continue to demand money from the national government.
The round of meetings with governors and mayors intensified this week. Patakis on Wednesday received community leaders from Buenos Aires at the Palacio de Hacienda, and the Chief of Staff, Juan Mansour, organized a new tour yesterday with Governors Omar Perotti, of Santa Fe, Gildo Insefran of Formosa, and Sergio Ziliuto, of La Pampa. And despite the bitter pill involved in the reality bath, officials have highlighted the minister’s “detailed” role.
late on Wednesday, And the government announced that “the primary cumulative result for the first semester records a deficit of $755.975.7 million, i.e. 0.99% of GDP.” In this context, the official statement confirms that the goal set with the International Monetary Fund was achieved in that period. However, in the executive branch, they realized that a series of accounting movements were used to reach this figure, so the spending margin for the second half of the year is limited.
With this scenario, the Ministry of Economy seeks to speed up the creation of a single account for managing state expenditures. Patakis announced this days ago, but the decree of necessity and urgency that Alberto Fernandez must sign has not yet been published. The tool is a key focus by the new Treasury Secretary, Martin de Bella, who is considered by his former colleagues in the administration in the province of Buenos Aires to be the “prosecutor.”
Meanwhile, the volatility continues. The country is going through the fourth consecutive week of running on the exchange rate. The government hopes to take a series of more aggressive measures than those announced so far after the bilateral meeting scheduled for July 26 with the President of the United States who contracted Covid yesterday. It is not yet known whether the meeting will be postponed. Anyway, as the song by Brazilian singer-songwriter Kazuza says, time does not stop. New definitions await.