Chubut accuses Macri administration of discriminationFriday, January 6, 2017
Federal government gives 25 billion pesos to BA province, sparking politial dispute
Assistance from the federal government to the province of Buenos Aires wortharound25 billion pesos is threatening to spark a round of political confrontation, with the province of Chubut accusing the administration of “discrimination.”
A decree that is yet to be signed will reportedly pardon 10 billion pesos of debt owed by La Plata to the federal government and transfer a further 15 billion in cash in order to cover shortfalls in the 2016 budget provincial Economy Minister Hernán Lacunza has revealed. He denied that there were any electoral motivations behind the move and said that the funds would be drawn from budget lines belonging to government, separate from the revenue-sharing system. The funds have been set aside for highways, sewage works among other infrastructure.
The provincial deficit in 2016 was 28 billion pesos, part of which is due to the fact that the largest and most populous province in the country is chronically underfinanced as one of its revenue sources was capped in 1996. Buenos Aires Governor María Eugenia Vidal has been trying to get that cap lifted.
Despite the arguments put forward by Lacunza, Chubut Governor Mario Das Neves has already warned that the move would be “a mess, and there will be injustices.”
“Let’s remember all of the other provinces, because there are many that have problems. Let’s not start the year this way because it’s going to end badly,” he added.