Argentina's provinces record first primary deficit since 2019

Argentina's provinces ended 2025 with a consolidated primary deficit of $380.3 bn, the first negative result since 2019 and the worst fiscal performance in six years. Total financial accounts shifted from a $1.98 bn surplus in 2024 to a $3.6 bn deficit, driven by expenditures growing nearly twice as fast as revenues. While provincial tax revenues rose modestly, the share of national-origin resources fell, and the biggest local levy, Gross Income Tax, slipped 0.3 % in real terms. Salary spending and social security benefits accounted for the bulk of the spending increase.

In Santa Fe, the provincial government reported a $594.99 mn deficit for the period January–May 2026. Revenues totaled $5.56 bn, against $6.16 bn in expenditures. Three taxes—Gross Income, VAT and Income Tax—provided 89 % of total tax collection. Public‑sector salaries grew 48 % year‑on‑year, outpacing inflation, while capital investment rose 72 % nominally, funded mainly by prior fiscal surpluses and specific loans for infrastructure projects.