The province of Santa Cruz is facing a financial crisis that has forced the government of Claudio Vidala to pay state salaries in two installments, while the municipality of Río Gallegos has declared an administrative and economic emergency until 2026 to balance its books. The provincial Ministry of Economy clarified in a statement that the salaries of state employees would be paid in two tranches and that payments would be completed this week, a measure that involved a considerable delay compared to the usual dates and generated discontent among public employees. From the provincial Executive, they recognized that the available resources 'are not enough to cover salary obligations on time and in form', due to the drop in automatic transfers from the Nation and a decrease of almost 30% in oil royalties between January and September. In parallel, the mayor of Río Gallegos, Pablo Grasso, signed Decree No. 6861, which declares the administrative and economic emergency of the district until December 31, 2026. The decree freezes the staffing level, suspends new hires, and orders a comprehensive review of the municipal structure to reduce expenses and maintain financial balance. According to the official text, the municipality's national and provincial revenues fell by 10.4% in real terms compared to 2023, while inflation is around 25% and salary agreements reach 29.4%, which puts pressure on public accounts. With the staggered payment of salaries in the provincial administration and adjustment measures in the capital, Santa Cruz is facing one of the most delicate fiscal situations in recent years, in a scenario of high inflation and a contraction in hydrocarbon activity.
