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Argentina’s Local Cash Crunch Deepens as Judicial and Political Pressures Rise

The twin pressures signal rising institutional strain in Argentina.

Overview

  • Mayors report a sharp fall in coparticipation—the shared federal taxes sent to provinces and towns—along with weaker local collections that now threaten payrolls and basic services.
  • COFEIN, the federal council of mayors, denounced “critical financial choke” and filed demands for automatic, formula-based transfers and a share of fuel-tax revenue.
  • The national government authorized 400 billion pesos in advance revenue shares to 12 provinces, a stopgap that local leaders say does not fix the funding gap.
  • A federal judge lifted bank secrecy on Cabinet chief Manuel Adorni and his wife in an illicit enrichment probe at the request of prosecutor Gerardo Pollicita.
  • Senate Peronist leader José Mayans urged the lower house to initiate impeachment proceedings against President Javier Milei and leveled sharp attacks on his inner circle.