In a move seemingly meant to tone down its conflict with provincial leaders over federal tax shares, the Milei administration announced on Thursday that it will provide provinces with additional funding for education. The decision, published in the Official Bulletin, states that Argentina’s “social and economic situation” requires that funds for this particular area be “guaranteed.”

According to the decree, the government decided to renew a provision mandating that a certain percentage of federal taxes be destined to the provinces for education. Although the law that regulates educational funding and contains said provision has already expired, the specific article regarding shareable taxes has been renewed over the years in order to guarantee funding for education.

“The specific assignment of shareable resources is intended to raise the educational budget for the provinces and BA City. Said resources are meant to be for salaries and the improvement of educational infrastructure,” reads the decree. 

The announcement comes amid heavy conflict as the school year for primary and secondary levels begins around the country and the federal government has feuded with the provinces over funding. Teachers in several provinces were on strike Monday after the government refused to pay into a fund that contributes to their wages, while a fund that subsidizes public transport fees has also been axed. 

In its quest to reach a zero fiscal deficit, the Milei administration decided not to issue a 2024 national budget and continue to fund all state affairs with the same amount established in the budget of the year before. In February, interannual inflation hit 254.4%. 

The decision can be seen as an olive branch, as it also comes on the eve of a meeting President Javier Milei will have on Friday with the governors in Casa Rosada to discuss future reforms that could be sent to Congress and a possible fiscal pact. According to the president’s press office, the idea is to discuss the “May pact” Milei has invited opposition leaders to sign in Córdoba on May 25, a national holiday commemorating Argentina’s May Revolution.

A couple weeks ago, Chubut Governor Ignacio Torres (PRO) said he would stop delivering oil and gas to the rest of the country unless his province received its share of federal tax funds. Last week, Buenos Aires Governor Axel Kicillof announced he would take the Milei administration to the Supreme Court to demand that federal tax funding be restored to the province.