MercoPress. South Atlantic News Agency

Cristina Fernandez ‘knocks out’ governors from influencing mid term election

Governor Scioli received a quick and prepared reply from the central government

The government of President Cristina Fernandez implemented a new system whereby mayors will be able to directly apply for financial assistance for their districts, thus bypassing governors. Earlier in the week the most outstanding governor and (political ally) Daniel Scioli from Buenos Aires province had formally requested reconsideration of the tax sharing program.

Resolution 13/2013, published in Argentina’s Official Gazette, had been mooted for some time and, according to local media interpretations represents a move to undermine the power of governors by forging direct links between the federal government and individual mayors. In other words handouts from the federal government, in an election year will be distributed directly to the local political leaders

The resolution specifies that the financial aid will be for “the execution of expenses corresponding to the services of said jurisdictions,” and originates from Article 3 of Decree 2609/12, signed on December 27, which is entitled “Application Processes for Financial Aid.”

When the decree was published on January 4, it was also revealed that funds of 1.129 billion Pesos (approx 200 million dollars) were granted to an unspecified group of municipalities.

The text states the prerequisites for applications including that requests be directed to Cabinet Chief Juan Manuel Abal Medina, together with municipal account balances and  the intended purpose for the funds will have to be clarified.

Via this measure, which has been criticized by opposition-allied mayors, the federal government significantly limits the role of provincial governments in determining the allocation of revenue to their municipalities.

Santa Cruz Governor Daniel Peralta described the development as “undermining provincial autonomy,” “generating division” and “covers up the discussion we should be having about the correct distribution of resources”.

“The people voted for a governor, not a national minister to happily distribute resources throughout the country, discriminating some over others,” said Peralta. Two mayors in Santa Cruz filed suits against Peralta earlier this week claiming that the provincial government had failed to provide funds.

Governor Peralta called for the “discussion of a new federal revenue-sharing law,” affirming that “many governors have the same problems” with the current scheme, and also demanded the “return of 15% of the revenue-sharing taken from us to finance ANSeS, which today is not depositing a single peso in the provincial pension account.”

Malvinas Argentinas Mayor Jesús Cariglino described the direct funding of mayors without provincial involvement as “punishment for those who do not think like them.”

The mayor said that the “national government has owed us funds for years, and this has been documented. As they always do, they begin works but do not finance the certificates.”

“The funds they will (supposedly) give districts are those they have been promising before while works are abandoned,” he asserted, adding that the current government “grinds” down dissident mayors and governors “without even blinking.”

On Tuesday the administration of Buenos Aires Province sent a letter to the national government requesting to discuss the distribution and sharing of tax funds.

Buenos Aires province cabinet Chief Alberto Perez asked for a hearing to the president of the Lower House Julián Domínguez, to discuss “the Federal Revenue Sharing Act and the elimination of limit to the so-called Fund of Greater Buenos Aires”.

The note says: “I have the honor to address you in your dual capacity as President of the Lower House and a man of the Province of Buenos Aires, in order to request a hearing to discuss two issues of the most significance for our province“.

“It is necessary to renew discussions on the current Federal Revenue Sharing Act, and the removal of the 650 million Pesos cap that are destined to the Province by the Fund for financing of social programs in the Greater Buenos Aires”.

Scioli is a self proclaimed 2015 presidential hopeful (‘if Cristina doesn’t run’) and a strong leader in Argentina’s main electoral district, the province of Buenos Aires. But his wishes clash with President Cristina Fernandez re-re-election plans or at least the anointment of her successor.

Next October Argentina is holding mid term elections to partially renew congress and with governors short of cash, some of them even to pay salaries and monthly expenses, they have become hostages of the national Treasury.

This way local ‘faithful’ mayors will help name the right candidates for the new congress that might then have the necessary majority to introduce constitutional amendments, maybe even a third consecutive re-election mandate.