Buenos Aires provincial funds to municipalities decline in real terms early 2026

A PPA consultancy report analysing provincial transfers to the 135 municipalities of Buenos Aires province found that, after adjusting for inflation, the total amount of funds fell 2.14% between January and May 2026 – a loss of roughly 52.9 billion pesos in constant May‑2026 values. While nominal transfers rose 23.5% year‑on‑year, inflation of 33.2% erased the gain, resulting in a real loss of 7.3% for May alone.

Municipalities experienced uneven effects. Olavarría’s real resources dropped 1.68%, while Rivadavia saw a 2.2% decline. Only 33 municipalities managed to increase real funding, whereas 44 recorded falls greater than 3%. The differences were attributed to the Coefficient of Single Distribution (CUD) and local economic activity. The Emergency and Strengthening Municipal Investment Fund (FEFIM) injected about 25.3 billion pesos, softening the overall decline; without it, the cumulative drop could have reached 3.3% (about 78.3 billion pesos).