Buenos Aires, November 5 (NA) -- The dispute between President Javier Milei and the governor of Buenos Aires, Axel Kicillof, added a new chapter this Friday after the national government threatened to block the debt law approved by the Buenos Aires Legislature.
According to what Noticias Argentinas agency was able to learn from official sources, the warning raised alarms about a potential provincial default risk and deepened the political conflict between Milei and Kicillof.
In a television interview, Minister of Economy Luis Caputo stated that Buenos Aires "is not complying" with the Fiscal Responsibility Law and, therefore, the Ministry could not authorize the placement of new debt. According to Caputo, the norm prevents provinces from taking on financing if "current spending runs above inflation", something he said occurs in the Buenos Aires territory.
In this way, if the Nation does not validate the operation, the Province would be left without room to issue the US$ 3,685 million authorized by the Legislature to meet maturities, works and operational expenses.
Kicillof's response: "Quickly, Toto"
Following Caputo's statements, the Buenos Aires governor downplayed the official's arguments and stated that the project approved by the Legislature does not imply new debt, but rather "refinancing" of liabilities inherited from María Eugenia Vidal's administration.
"Have them approve it as soon as I send it. The approval, they pointed out, allows covering debt maturities for 2025 and part of 2026, which offers some room for maneuver in a context that Kicillof himself describes as one of "emergency".
In parallel, the governor accused the president this Thursday on social networks of having had an "explicit will" for the Province to "collapse" to obtain political gain.
"They bet on chaos and disorder," he stated.
The conflict is already generating repercussions in the Province
Amidst the crossfire between Kicillof and Caputo, the conflict over the national government's threat not to greenlight provincial borrowing has already begun to generate repercussions in the provincial legislative arena of Buenos Aires.
"National government spokesmen say they are not going to authorize it. Does that mean districts governed by LLA, like Tres de Febrero, are going to refuse to have the money transferred to them, right?", provincial deputy for Nuevos Aires Fabian Luayza questioned on social networks.
Thus, the legislator from Berazategui from the space that positions itself as a "third" way between the provincial ruling party and the national far-right wondered what will happen with borrowing in the districts where libertarians govern.
The agreement with the opposition that provided financial breathing room
The Buenos Aires Legislature had approved a key package for 2026: the Financing Law, the Budget Law, and the Fiscal Law.
The provincial government achieved a two-thirds majority after a broad agreement that included a distribution of positions in key organisms, especially in the Banco Provincia.
From La Plata, the result was celebrated as a financial relief in the face of cuts to national funds.
