Argentina's Economy Minister Gains Ground in Governor Negotiations, Emphasizes Fiscal Management

Argentine Economy Minister Luis Caputo asserts that he is fostering a strong working relationship with most provincial governors, defining the current government as "federal" and highlighting the interconnectedness of national and provincial prosperity. "I'm doing great work with most of the governors," Caputo stated this week, underscoring that "if the provinces do well, the country does well."

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I'm doing great work with most of the governors. If the provinces do well, the country does well.

Caputo, alongside Diego Santilli, is reportedly working to secure gubernatorial support for crucial legislation. This effort aims to prevent a repeat of the challenges faced when parts of the inviolability of private property bill were removed. Key legislative priorities reportedly include measures related to cold zones, electoral reform, and the 2027 budget.

Since the beginning of his tenure, Caputo has centered his fiscal strategy on adjusting resources for the provinces. This involves not only reducing discretionary transfers but also eliminating specific funds, such as those for transportation, and shrinking the public works budget. Despite these fiscal measures, Caputo claims that governors are not voicing complaints directly to him.

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no governor called me to complain.

During a recent visit to Córdoba, Caputo stated that "no governor called me to complain." He even mentioned that the only governor who contacted him was "from the opposition, to let me know he was going to have surgery." This contrasts with the public stances some governors have taken and their past efforts, like a proposed law a year ago to share fuel tax revenue, which was signed by all 24 governors.

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from the opposition, to let me know he was going to have surgery.