Argentine Minister Meets Governors Amidst Provincial Revenue Growth

Argentine Interior Minister Diego Santilli is actively engaging with allied governors to foster federal development. His recent meetings include discussions with Salta Governor Gustavo Sáenz and Undersecretary of Institutional Management Eduardo “Lule” Menem, focusing on consolidating policies for federal growth. Santilli also met with Catamarca Governor Raúl Jalil to advance an agenda covering productive development, mining, logistics, and investment, with a particular emphasis on the province's growing lithium sector and its pioneering provincial law for a seed cluster.

These meetings occur against a backdrop of improved financial conditions for the provinces. May's revenue sharing is expected to show significant real growth, with automatic transfers to provinces rising by 6.1% as of May 26. This increase is largely driven by corporate tax payments, which have boosted revenue sharing from the profits tax by 6.6% in real terms. This marks the first real year-on-year growth in these transfers for 2026, with the nominal amount distributed reaching a historic high of 6.9 trillion pesos.

Beyond automatic transfers, non-automatic transfers also saw substantial contributions. As of May 25, these totaled 102.1 billion pesos, primarily supported by payments to provincial pension funds (46% of the monthly total) and the "Universalization of Extended Schooling" program (39% of the monthly total). These funds are being distributed to various provinces, with specific allocations for pension funds concentrated in eight provinces and the schooling program benefiting 16 provinces.