2024-03-13 03:30:00
Javier Milei’s economic policy and decree 70/2023 reduce the province’s resources, and its ability to respond to the growing social demands in Río Negro in terms of health, education and neighborhood dining rooms.
It is necessary that the political leadership as a whole and especially those of us who have institutional responsibility work to repeal decree 70/2023, recover national funds and non-automatic transfers, and stop the brutal adjustment to salaries, pensions and public works that causes this social and economic disaster in the country and in Río Negro.
The crisis is accelerating and the national government does not seem to change course. We appreciate that the province joins the league of Patagonian governors to establish a joint position in defense of our interests and resources, but we are concerned and alert that this initiative is led by Macrista governors who validate DNU 70/2023.
General drop in income
According to the Ministry of Economy of Río Negro, resources of national origin fell by 21% in January and tax resources fell by almost 5% and approximately 4% in February, in real terms.
In the month of February 2024, a total loss of 15,216 million pesos was recognized, which is equivalent to 90% of the teacher salary mass “for the same month, or 35% of the total salary mass paid by the province this month ». (Rio Negro Newspaper)
Between December and February, the loss of economic resources amounts to 37,000 million pesos, which is equivalent to 64% of the teacher salary mass accumulated in these three months, and 25% of the total salary mass.
Why does Rio Negro have less income?
The recession caused by the fall in income and consumption, plus the paralysis of public works, has a direct impact on national and co-participatory collection, and on provincial collection (around 80% comes from Gross Revenue) in addition to the fact that they no longer reach the non-automatic transfers (protected by laws) that the national government has been arbitrarily cutting. It is worth clarifying that the majority of the funds are not “national” but rather resources from the provinces that the nation collects and must share by law.
Why are family incomes falling?
Decree 70/2023 deregulated the pricing system, which after the devaluation, was seen in food, fuel, energy rates, and disproportionate increases in medicines. Prices find a ceiling only at the point at which sales fall and companies sacrifice profits. It is unfortunate in the case of medicines or medical supplies that have inelastic demand, they cannot stop buying. All this without increases in salaries and pensions, consumption, internal demand, production and local commerce fall.
Problems in the provinces
In health, complaints are reiterated, whether due to the lack of basic supplies, medications or even the salary conditions of professionals. While the deregulations of decree 70/2023 continue to increase the weight of medicines in total spending, and speculation by laboratories and medical companies with prices is allowed. Let us remember that the decree repealed law 27113 that declared and guaranteed the national and strategic interest of the production of medicines and medical supplies. And it also repealed law 20,680, which penalized the withholding and excessive price increases in basic goods and services, including medicines and basic health supplies.
In education, classes are not going to start, Unter declared a strike next Monday and Tuesday, teachers continue to receive the same salaries since November with a non-remunerative bonus that was paid in January and February, while the accumulated inflation of December (25.5 ), January (20.6) and February (estimated 16%). And the national transportation policy, added to the increase in prices and fuel, puts school transportation and access to transportation for hundreds of students and families who cannot pay the bus ticket at risk.
The rest of the provincial and municipal public workers find themselves in a similar situation, with a brutal loss of real income, and mostly below the poverty line.
Public works are paralyzed and the mayors do not have interlocutors in key areas of the national government (PROCREAR, Enhosa, SISU) for the continuity of important works such as housing construction, infrastructure in energy or water services in popular neighborhoods, among others, are without destination.
The fall in retail sales (according to Came by more than 30% in January) and the increase in rates and rents generates the bankruptcy and closure of small and medium-sized businesses throughout the province.
There have already been complaints and requests for sanctions for the food emergency in different municipalities of the city, given that the demand for food grows every day in the kitchens, social organizations receive fewer resources from the nation, and the municipalities cannot contribute more than they that they contributed. While the national government threatens to withdraw the social development CDRs, fire its workers and defund social programs.
The economic and social crisis is imminent if the course goes wrong, beyond the political and ideological perspectives, it is not feasible with the state of provincial public finances to respond to the emerging demands in our province (Río Negro has depended for many years on the resources of national origin, approximately 70%) and municipalities with the economic policies carried out by Javier Milei.
It is urgent to reject the DNU to stop the serious situation that Río Negro is going through, Unión por la Patria has 33 senators and needs 4 more to be able to reject it in the Lower House, If the Patagonian governors agree we can put an end to this legal mess that continues to do a lot of damage and leads us to a political, economic and social crisis.
* Provincial Legislator PJ-Nuevo Encuentro Block.
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