Santiago del Estero’s near‑zero debt highlighted as Argentine provinces’ surplus narrows

A technical report by the Fundación Encuentro shows that Santiago del Estero maintains almost no public debt per capita, placing the province among the most solvent in Argentina and shielding it from foreign‑currency liabilities. While the province enjoys this low‑debt position, the consolidated fiscal results for all 23 provinces and Buenos Aires City reveal a shrinking primary surplus in the first quarter of 2026. The primary surplus fell to 4.9% of revenue, down from 9.3% a year earlier, and the overall primary balance stayed positive at 2.4%. Real provincial revenues dropped 3.1% while primary spending rose 1.6%, tightening fiscal margins. The analysis notes the continued reliance on national transfers, especially the coparticipación, and that the Gross Income Tax remains the main source of own revenue. Primary spending is dominated by public‑sector wages, current transfers and social security benefits, limiting the ability to cut costs during revenue downturns.