Conflict over federal funds RAE ARGENTINA TO THE WORLD

Buenos Aires province will also sue the Government

The conflict between Milei's government and the provinces escalates and now the largest district in the country joins: Buenos Aires.

Yesterday, the Casa Rosada decided to eliminate a fund that this jurisdiction had been receiving since 2020, for an amount equivalent to about US$ 800 million per year.

For this reason, the governor of Buenos Aires, Axel Kicillof, anticipated that he will denounce the Executive before the Supreme Court.

And he regretted that the funds cut were invested “in education, health, security" and therefore the measure, he said, "is against the people of the province of Buenos Aires".

The rift comes on top of a dispute with the province of Chubut, which is claiming some 13 million dollars in tax revenues.

In this context, governor Ignacio Torres was yesterday mandated by the local parliament to move forward with legal actions on the case.

And he ratified the threat of suspending the supply of oil if the Nation does not transfer the funds he is claiming.

It is worth remembering that Torres was publicly endorsed by his peers from almost all the provinces in the dispute.

One of them is Gustavo Melella, from Tierra del Fuego, who also announced a 24-hour cut in crude oil deliveries, in solidarity with Chubut.

In any case, like other governors, he called for a dialogue with the Casa Rosada to de-escalate the conflict.

From the Milei administration the announced direct actions are "extortion".

And they recall that Chubut keeps a debt with the Nation, which was deducted from the tax revenue shared funds.

In the last weeks, the national government reduced or eliminated funds received by the provinces, with the declared purpose of balancing the public accounts.

In this context, subsidies to public transportation and the financing of part of the teachers' salaries were axed, which triggered the conflict with the local states.