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[BUSINESS] · Argentina · 10 sources

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Argentina provincial transfers hit lowest level since 2005

Argentina's national government intensified fiscal adjustments in August, resulting in the lowest level of discretionary fund transfers to provinces since 2005. These transfers fell by 66.4% in real terms, totaling $68,288 million for the month. The reduction significantly impacted funding for education, infrastructure, and social welfare programs.

According to reports from IARAF, accrued government expenditure contracted by 9.95% in August, while effectively paid expenditure decreased by 7.95%. The most significant cuts were seen in transfers to provinces and municipalities, which dropped by 66.39%, as well as non-personal services and social assistance.

President Javier Milei has maintained that fiscal tightening will continue until inflation is controlled. Economy Minister Luis Caputo faces the challenge of meeting fiscal surplus targets agreed upon with the International Monetary Fund (IMF). The distribution of remaining funds showed high concentration, with Buenos Aires, Entre Ríos, and Santa Fe receiving the largest shares, while provinces like Tierra del Fuego and Formosa received less than 0.3% each.

Entities

Argentina · IARAF · IMF · International Monetary Fund · Javier Milei · Luis Caputo · Politikon Chaco

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