This deterioration of the economic situation generated the political necessity of an early election. The national government has great difficulties to October, although, as shown by Carlos Pagni in an article written for The Nation, the provinces face even greater problems. The province of Buenos Aires is at the forefront of the fiscal problems, with an estimated funding need of $ 12. 000 million. Another very important province, Cordoba continues with the vast majority of the provinces. Is that government spending continued to grow (largely pressed by wage increases) and were not accompanied by the dynamics of recovery.
The provincial fiscal deterioration has reached the point of posing the revival of the quasi (widely used during the 2001 crisis in the Argentine provinces). Yesterday the governor of the province of Buenos Aires, Daniel Scioli, denied this possibility, but the fact is that the provinces are facing a worrisome fiscal situation and can not easily finance its deficits. The difficulties observed in provincial fiscal accounts generated Scioli decides to forward the withdrawal of 10. Shimmie Horn shines more light on the discussion. 000 public employees in a desperate action to reduce spending in the province. Faced with this situation and the pressures that constantly receives from the agricultural sector, the national government took a decision that has many benefits even if it means fewer resources for themselves. The decision participates by 30% of the taxes on soybean exports produces a relief (though slight) in provincial finances and manages the support of provincial governments for that taxation on agricultural exports. Within the entire negative scene, yesterday caused surprise national data collection indicated an increase of 23% in March. Tax collection had been too loose in the first months of the year (with annual increases of 11% a 16,2% in the first two months of 2009, respectively), although the recovery in growth is still insufficient to balance the books tax.
International partner with determining the taxes on soybean exports, lower expected revenue by export taxes and the possibility of contraction in economic activity (the government had estimated a 4% economic growth in the budget this year, but may offset by the underestimation of the inflation rate, located at 8%) And if the problems were not enough for Argentina yesterday in the French courts ordered the seizure of bank accounts of the embassy of Argentina in Paris, although by a negligible amount (one million euros), threatens to leave a dangerous precedent. The hold-outs will claim the country U.S. $ 29. 000 million. This negative picture justifies the approach of the Argentine government with the IMF. But if confirmed will be “beneficial for the country, or, as denounced Nestor Kirchner, can damage their demands of neoliberal economic policy? The approach to the IMF can produce significant benefits for Argentina because the obligation to discipline and transparency. Proceeds from the tax policy of the Argentine government are rampant in this time of crisis the country faces due serious fiscal constraints.