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Argentina's Governor-Elect Raises Alarm Over Looming Financial Crisis

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BNN Correspondents
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Argentina's Governor-Elect Raises Alarm Over Looming Financial Crisis

On the brink of assuming office, Rogelio Frigerio, the governor-elect of Entre Rios province in Argentina, has voiced out his concerns regarding the economic hurdles his incoming administration is set to face. Particularly, the payment of December salaries and the mid-year bonus, which are now hanging in the balance due to fiscal policies implemented by the outgoing government.

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The Economic Quagmire

The root cause lies in the tax reductions that were part of the outgoing government's fiscal policies. These reductions have resulted in a significant impact on revenue sharing from federal taxes, creating a shortfall that is equivalent to nearly one payroll. This situation, according to Frigerio, a prominent member of the opposition coalition Juntos por el Cambio, jeopardizes the timely payment of salaries and bonuses, making them dependent on December's revenue collection.

Criticism of Campaign-Driven Policies

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The governor-elect went further to criticize the national government's campaign-driven policies, stating they have had a detrimental financial impact on provincial resources. Frigerio plans to conduct a thorough audit of the public accounts after assuming office. He also intends to file a legal claim with the Supreme Court over the reduced shared revenue.

Challenges Beyond Economics

Frigerio's concerns aren't just limited to fiscal issues. He stressed the need to address critical areas such as education, health, and security without the benefit of a comprehensive inventory. As an added challenge, he emphasized the importance of maintaining unity within the Juntos por el Cambio coalition amid internal movements, as they gear up for a meeting of the League of Governors from the coalition.

These concerns were also shared by the governor-elect of Chubut, Ignacio "Nacho" Torres, who blamed the national government's proselytizing measures for the provinces' inability to pay the December bonuses. With these mounting challenges, only time will tell how these newly elected officials manage to steer their respective provinces through these turbulent waters.

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