Santa Cruz Province court ruling allows debt deductions, fuels political dispute

The Superior Court of Justice of Santa Cruz issued a ruling that re‑authorises the provincial government to withhold from the province’s share of federal co‑participation the amounts owed by municipalities to the Caja de Previsión Social. Critics say the decision blurs the separation of powers, noting that the tribunal’s new members were appointed during Governor Claudio Vidal’s term. They warn that the move could jeopardise municipal employees’ pay if local finances are strained.

In response, the provincial government convened a meeting with mayors and development commissioners to discuss the ruling and seek a consensual financing plan for the pension system. Ministers highlighted dialogue as a path to sustainable solutions and clarified that the court’s decision does not affect municipal workers’ salaries. The dialogue aims to balance municipal needs with the obligation to fund the provincial pension fund.