Argentina road infrastructure fund dispute

In Argentina, a political and legal dispute has emerged regarding the management of funds collected through the fuel tax, which are legally earmarked for road infrastructure under Law 23.966 and the Integrated Road System (SISVIAL).

Initially, Gabriel Katopodis, the Minister of Infrastructure for Buenos Aires province, testified that while the fuel tax increased by over 1200% in nearly three years, 1.5 trillion pesos collected since December 2023 had not been used for road maintenance. He argued this practice forces citizens to ‘pay twice’ for repairs. Presidential spokesperson Adrián Ravier denied any misappropriation, stating resources are being managed to preserve value during high inflation.

Following these allegations, Argentine legislators, including Senators Adán Bahl and Marcelo Lewandowski and Deputies Victoria Tolosa Paz and Guillermo Michel, have intensified scrutiny. Reports suggest that despite the collection of over 1.5 trillion pesos through SISVIAL, less than 30% of these funds have been executed for road works. Deputy Victoria Tolosa Paz has filed a presentation with Federal Justice to investigate the withholding of these earmarked resources, while Senator Lewandowski criticized the use of funds to balance public accounts rather than addressing the deteriorating condition of national routes.