Buenos Aires provincial legislature stalls municipal fund reform

The Buenos Aires provincial legislature has postponed for a second consecutive day a proposal to give mayors free access to the Emergency and Strengthening Municipal Investment Fund. The bill would allow municipalities to use 100% of the funds, currently split 70% by the province’s distribution coefficient and 30% for specific projects.

Governor Axel Kicillof’s administration supports the idea in principle but says any change must be approved by the legislature. Opposition parties and factions within the Peronist coalition blame each other for the deadlock, arguing that the current allocation was a political decision. The delay intensifies financial pressure on local governments, which are facing reduced provincial and national transfers, higher operating costs, and upcoming wage obligations.