2024-02-12 20:42:38
The dispute continues between the national Executive and the provinces over the reduction of subsidies and the distribution of resources as part of the adjustment. In this framework, the vice governors who are part of the permanent Forum of Vice Governors of the Argentine Republic (Fovira), issued a forceful statement against the president Javier Milei, who was accused of acting out of “political revenge.” In the letter, disseminated through social networks, they pointed out the detrimental effects of the decrease in funds for education (Fonid), transportation, small and medium-sized businesses, industry and other areas.
After the fall of the omnibus law, the provinces stood up against the adjustment measures. In the midst of this, Milei accused deputies and governors of being “criminals” for voting against the bases bill, while he carries out his international tour of Israel and Italy.
The statement released this Sunday, signed by the vice governors of the entire country, expresses: “We express our enormous concern at the ruthless advance of the national Government, unprecedented in our democratic history, against the workers of all areas, businessmen SMEs, producers, professionals, teachers, entrepreneurs, young people, merchants, girls and boys, retirees, while we warn about the fierce burden on the institutions of our country and the disdain for the federal system that governs us.”
In addition to condemning the Government’s economic plan, officials pointed out the president for carrying out “political revenge” against the provinces, after the adjustment and reduction of funds to the country’s districts.
“The chosen method has been to increase difficulties, deprive rights, fuel inflation, unprotect those whom the State must protect and take ‘political revenge’, such as the decision not to transfer funds to the provinces to supplement teacher salaries and subsidies for public passenger transportation, measures that the residents suffer and that have no logic or sense, other than that already stated and irrational “political revenge” against governors and mayors held responsible for not agreeing to grant no one the sum of public power,” the statement details.
In that sense, they pointed out that “the central government continues to promote policies and implement measures that in two months have immensely worsened a situation that was very complicated and that required restraint, knowledge, experience, great responsibility and extreme empathy for the people.” Argentines, particularly in the sectors most affected by the difficulties not overcome in recent years”.
No funds in Fonid
In another point of the four-page text, the signatories highlighted the severity of the adjustment in the educational field, as a result of the interruption in the allocation of resources from the National Teacher Incentive Fund (Fonid) to the provinces. They argued that this maneuver directed against “the families of our provinces” also “significantly endangers the education of their children with Milei’s determination to stop the transfers corresponding to Fonid.”
During the month of January, the Fonid was practically the only concept of discretionary allocations to the provinces that continued to generate income (from the payment of salaries, among others), but the Government “only transferred less than 1%” of the money to our provinces. total allocated to the area of Education, the text indicates.
In this way, the statement explains that, at the time of settlement of January salaries, teachers should have observed a decrease in their income on their pay stubs, which did not occur because the provincial governments compensated for that deficit. “This is an extremely serious situation, the sole responsibility of the President of the Nation. Fonid has been in Argentina for 26 years. “It is a component of the salary in a country where many provinces have a high component of their budgets allocated to salaries.”
He adds that “the presence of the State is crucial, reintegrating in this way part of what the provinces produce. It cannot disappear from one moment to the next. It is more than 14.5 billion pesos per month. It is a sum that is impossible to compensate if kept over time, as is clearly noted, since it is clear that with our income cut and with the enormous drop in economic activity this contribution from the provinces will not be able to be sustained in the medium term” –
To conclude on the resources allocated to education and the payment of teacher salaries, the vice governors warned that if this situation persists, “the provinces will not be able to take charge of these salary components that are the exclusive responsibility and obligation of the National Government and this situation is occurring in all jurisdictions of the country, which are being subjected to the same delay in the transfer of teacher salary supplements by the Milei government.
No transport subsidies in the provinces
In relation to transportation, an issue that has generated several conflicts during the week and has further strained relations between the Government and the provinces, the statement stressed that “governments support public transportation services around the world” since ” “The social impact is relevant in developing countries where mobility is price sensitive.”
They explained the need to continue receiving funds for transportation from the National State, because “transportation systems very rarely function without being subsidized in a significant percentage by the State.”
Along these lines, they highlighted that it is essential to establish modalities for allocating subsidies that combine fiscal efficiency with social equity and generate, at the same time, the necessary incentives for operators to offer an adequate service.”
This subsidy makes a considerable difference in the working lives of thousands of people. “Reducing commuting costs frees up economic resources for workers, which in turn improves their quality of life. Additionally, the reliability and efficiency of subsidy-supported public transportation contribute to punctuality and labor productivity,” the vice governors explained.
Furthermore, they questioned: “Here, in our country, with arguments that are difficult to sustain with a minimum of seriousness, it is decided not to do what developed countries or developing countries do in the world. What our neighbors do, what no one doubts that what we have to do: subsidize public transportation.”
“Given President Milei’s decision not to return to the provinces the resources they generate by stopping transfers or, as in this case, subsidies, the inevitable question is: where does he plan to put the 104 billion pesos that he is cutting? What do you intend to dedicate them to? Not to food assistance, as we are seeing what happens with community kitchens; not to public health, not to public education, not to the generation of jobs, not to the completion of public works of infrastructure,” they expressed.
At this point, they objected against privatizations: “We have already seen the results of the privatizations undertaken in the 90s. We have already seen the lack of investment by large electrical companies in periods in which they had enormous profits and those dollars went out of the country and were not transformed into investments that would prevent supply cuts from happening today.
They ended the presentation by asking the following: “With respect and firmness, we ask President Milei to stop holding Argentines hostage in his political battles and not to threaten their quality of life as he is doing. Argentina “It is the sum of the provinces that make it up. We reiterate this concept that is key to understanding what a country is like for everyone, without centralism, without whims and with social sensitivity and total responsibility,” they concluded.