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Milei’s Agency Closures Prompt Governors to Demand Overhaul of Revenue Sharing

Provincial leaders convened at the CFI to push for fuel tax and ATN redistribution following the government’s closure of national agencies to save an estimated $100 million annually

Billetes de pesos en un cajero automático
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La decisión de Arroyo Salgado se dio a conocer tras la orden de excarcelación emitida por la Cámara Federal de San Martín el lunes pasado.
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Overview

  • The administration used delegated powers to shut the Dirección Nacional de Vialidad, Comisión Nacional del Tránsito y Seguridad Vial and other bodies on July 8 to achieve annual savings of about USD 100 million
  • Governors led by Santiago del Estero’s Gerardo Zamora met at the Consejo Federal de Inversiones to address a 4.2% drop in coparticipation transfers and agreed to jointly propose a bill reallocating fuel taxes and ATN
  • Economy ministers from all 24 jurisdictions held talks with National Secretary of Hacienda Carlos Guberman to negotiate resource distribution amid tightened provincial budgets
  • Fewer than one in four governors who backed the 2024 Pacto de Mayo plan to attend Milei’s 9 de Julio vigil in Tucumán, underscoring waning support for the president
  • In the Chamber of Deputies, opposition deputies pressed forward with emergency measures for pediatric care at the Garrahan Hospital and restored funding for public universities as the government’s majority erodes