Significant Increase in Provincial Funds in Argentina

This year, provincial funding in Argentina saw a significant increase to $18 billion, representing a 25.7% share of the national treasury, amidst ongoing budget cuts by the government of Javier Milei.


Significant Increase in Provincial Funds in Argentina

The government of Javier Milei has significantly increased the funds allocated to the provinces, reaching $18,000 million in February, representing a 25.7% increase of the total National Treasury Allocation Fund (ATN) formed that month. This was disclosed according to data from the National Directorate of Provincial Affairs (DNAP). In contrast, the cut in non-automatic transfers to the provinces deepened by 5.6%, according to a report from the consultancy Politikón Chaco.

Buenos Aires City was an exception in these cuts, as the $112,676 million allocated was not included, complying with the Supreme Court ruling that ordered the restitution of the retention of Coparticipation funds during Alberto Fernández's administration. Although Milei's government abides by the ruling, these allocations are made weekly instead of daily through the coparticipation system.

In February, the provinces that received the most funds were Neuquén with $8,619 million, followed by Río Negro with $5,160 million, Mendoza with $3,337 million, Misiones with $3,092 million, and Buenos Aires with $2,927 million. In contrast, the other 18 provinces received less than $700 million each, with La Pampa being the most affected with only $27 million for the entire month.

The main resource allocated to the provinces was the National Treasury Contributions (ATN), which amounted to $18,000 million in February, representing 61.4% of the total non-automatic transfers, excluding payments to the Autonomous City of Buenos Aires. Neuquén, Río Negro, Mendoza, and Misiones were the provinces that received the most ATN, with amounts ranging between $3,000 and $7,000 million. In comparison, in February 2024, the total ATN distributed was only $3,500 million.