The national government refuses to guarantee the new debt that the governor’s administration wants to take on Axel Kicillof in the province of Buenos Aires, which was approved last week in a scandalous session of the Buenos Aires Parliament.
While it would refuse to approve this debt, the government of Javier Milei Yes, it would accept the takeover of those the province had already taken over. LA NACION learned this from libertarian sources.
In the early hours of Thursday, the Kicillof government managed to get the legislature to approve the debt request of up to 3,685 million, which includes the issuance of treasury bills and four debts: one for the central administrationanother for him executivea third party for the company AUBASA and a request for Buenos Aires Energy.
However, for the measure to be completed, the Buenos Aires government needs the approval of the nation, which recently allowed it City of Buenos Aires, Cordoba and Santa Fe access the international market.
But the relationship between the national government and that of Buenos Aires Province is different from them. Buenos Aires is one of the four provinces that did not agree to sign the agreement, for example May Pactin which La Rioja, Tierra del Fuego and Formosa also did not take part.
Nor have there been any meetings with governors in Casa Rosada in recent weeks that the other 20 attended.
As a counterpart, there was another exchange between both governments, the Minister of the Government of Buenos Aires; Carlos “Carli” Biancorequested a meeting with the Interior Minister, Diego Santillito “reclaim the funds that the national government took from the people of Buenos Aires and resume the execution of the 1,000 works that they abandoned.”
It happened through an official letter to which Santilli responded via X: “Dale Carli, thank you. I’ll take note.”. There was no further news at the moment.
Part of the government’s position regarding the rejection of Kicillof’s debt was presented this Saturday by the Minister of Finance. Luis “Toto” CaputoIt says: “In the Budget Responsibility Act of 2004, the states undertake not to take on debt as long as current spending exceeds inflation.”
He then added: “Buenos Aires is not complying, so the new debt should not be approved. Today, current spending is rising above inflation.” This is a theme that the Minister of Finance has been repeating for several months: the provinces must adapt to this.”
The Chief of Staff also commented in this direction on Tuesday, Manuel Adorniin maintaining, during the presentation of the Mayo Council’s final report. “In order to complete the institutional strengthening of the Nation State with a view to fiscal balance, the Council proposes to the President and Governors to publicly reaffirm the commitment not to seek debt authorizations when a province has a primary deficit, except of course in cases of debt overruns or a credit risk higher than that of the nation.”
About The Author
