Matías Paternó proposes new provincial tax co-participation law

Matías Paternó, a provincial deputy for La Libertad Avanza, has introduced a bill to establish a new provincial tax co-participation regime. The proposal aims to replace discretionary fund allocations to municipalities with objective, automatic, and transparent rules to ensure fiscal predictability and administrative efficiency.

The project outlines a primary distribution of national and provincial resources through a coefficient system. This would be followed by a secondary distribution based on population, the inverse relationship between staff size and inhabitants, and unmet basic needs. Additionally, a communal development fund (Fo. De. Co.) would be created specifically for infrastructure and equipment, with funds distributed based on project feasibility, general coefficients, and accountability to the Provincial General Audit.

The bill also seeks to harmonize taxes by prohibiting local fees or taxes that overlap with provincial or national tributes without effective service justification. To ensure fiscal control, the proposal requires the publication of budget execution, debt status, and personnel lists, while limiting municipal salary increases to those set by the provincial administration.