The province of Neuquén received 19.2% less federal contribution in February, a calculation that was made on the basis that inflation in the second month of 2024 will be 15%. The reason is that Income Tax collection was reduced by -38.3% in real terms year-on-year and the higher VAT collection, of 3.5%, was not enough to compensate.
In fact, the treasury that the Minister of Economy, Guillermo Koenig, jealously guards, received 36,979 million pesos in February, with an inflation of 238.4%, the figure implies a drop of -19.2%. In any case, according to what could be estimated, lOwn collection and income from royalties is what allowed the State’s payments to stay afloat. The province has a co-participation index of 1.8 and Río Negro 2.5.
As federal co-participation, the national government sent 2,212,000 million pesos to the consolidated provinces plus the Autonomous City of Buenos Aires. Special laws and compensation are included, compared to the 719,000 million that had been sent in February of last year.
According to a report from Argentine Institute of Fiscal Analysis, Iaraf, Discretionary shipments and distribution of special funds such as teacher incentives or transportation subsidies were not included in the calculation, because they were not sent except for some provinces.
The organization based in Córdoba indicated that, in relation to January, The joint collection of VAT and Profits, which represent 54% of the total national collection, decreased by -16.7% in real terms and the fall was above the average of the last 5 years, which was -10%.
The variation in co-participation for the month was negative in all jurisdictions, although there was a range of 5.9 percentage points. between Buenos Aires, which suffered the sharpest drop, 21.6%, and the City of Buenos Aires, which fell 15.7%.
Neuquén’s income is supported by royalties
The total resources of the province increased by 41.4% in January, despite the decrease in federal co-participation, the peak of inflation and lThe December devaluation that indirectly benefited the Neuquén coffers because the gap It came one day before royalties were settled.
In January, Minister Koenig He distributed 27,410 million pesos among the 40 municipalities, without counting the development commissions, against the 6,850 million pesos that his namesake Pons had distributed. in January 2023, that is, 300.2% more in nominal terms.
If inflation is deducted from that amount accumulated from January to January, was 258.8% as reported by the Directorate of Statistics and Censuses of the Province, the real increase was 41.4%.
He Javier Milei’s government reduced money transfers to the province of Neuquén by 11.5% in concept of federal co-participation, complementary laws and compensation during the first month of this year.
Of that mass that receives from co-participation, the Executive Branch deducts the 18% which is sent to the Judicial Branch which, according to the 1971 law of 1992, is so that it can be financed without having to ask for more money. Since the money is not enough, and on top of that with national shipments on the decline, he must have extra contributions.
Also from the national co-participation received by the Province, 7.5% is deducted, which, according to Law 2395, corresponds to the Legislative Branch. ANDIn the transition management between Rolando Figueroa and Omar Gutiérrez, the sanction of Law 3391 was promoted, which established that one and a half percentage points would be cut from the legislative fund. That is to say, it only receives 6%, but the discounted money remains in an account that is managed by the Executive to go out to alleviate some need of the other powers.
That is to say, from the total amount received through co-participation, 25.5% is subtracted from the municipalities and only then is added to the co-participatory mass that also makes up 15% of the own revenue and 15% of the hydrocarbon royalties.
In January, the amount of money grew by 41.4% in real terms despite a decrease in federal co-participation, so despite the secrecy of the Minister Koenig in publishing the collection and royalty data, a rebound is observed that helped maintain expenses.
With the January salary, the Figueroa government had to pay the last installment of the joint agreement with state unions with a 40% adjustment. Now a joint agreement is underway with teachers that does not take into account the inflation of that month and replaces it with a fixed sum.
According to the co-participation municipalities of 15% of the Real Estate tax went from 149 million pesos in January of last year to 353 million pesos this year. The record of a growth of 136% is not consistent with the 258.8% inflation, althoughThe final data is not publicly known even though they should already publish the February data.
It is for this reason that the 41.4% increase in Neuquén’s income is only explained by hydrocarbon royalties.