The governor of La Rioja, Ricardo Quintelasent a letter to the Minister of Economy of the Nation, Luis “Toto” Caputoin which it rejects the proposal to eliminate municipal taxes, arguing that this measure violates the tax autonomy of municipalities and is essential to finance public services and local development. Quintela emphasized that “it is not the municipalities or their rates that cause inflation, but rather erroneous national decisions.”
“I want to share the letter to the Minister of Economy of the National Government, @LuisCaputoAR who requested that municipal taxes be eliminated without taking into account the tax autonomy of the municipalities and that they are necessary to finance public services and local development. It is not the municipalities or their rates that cause inflation, but wrong national decisions“, wrote the Rioja native on his X account.
And he added: “These centralist decisions and a total lack of respect for the people of La Rioja harm and violate federal policies.” This letter is the most recent episode in a series of tensions between the provincial government and the national administration. In 2023, the national budget provided for a special allocation of $47,000 million for financial assistance to La Rioja and its municipalities. However, the province reported the lack of sending these funds, which aggravated the local fiscal situation.
In April 2024, due to lack of resources, the government of La Rioja implemented the Debt Cancellation Bonds (BOCADE), popularly known as “Chachos“. These bonds were issued to value the work and salary of those who provide services in the State, encouraging consumption and the economic reactivation of the province.
In August 2024, the province announced a default, which generated mixed criticism, but. In August of last year, the American news agency Associated Press carried out an analysis on the use of “Chachos” in La Rioja, highlighting its implementation in the midst of the provincial fiscal crisis.
Quintela’s recent letter to Caputo reinforces the tensions between La Rioja and the national government, evidencing the discrepancies around fiscal autonomy and economic policies that affect the provinces.
by RN
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