Federal Budget Allocation in an Emergent Democracy. Evidence from Argentina. José J. Bercoff Osvaldo Meloni
[email protected] [email protected] Universidad Nacional de Tucumán, Argentina Semimario Desarrollo Financiero y Economía Regionales Banco Central de la República Argentina 13 y 14 de Marzo de 2008 Feeding the National Budget Federal Tax- Other Taxes Sharing (example: import and Agreement export duties) (Coparticipación) 43% 57% National Provinces Budget Public Expenditure in Argentina, 2004 100% PE, FF & other entities 6% National Administration Budget Law: $ 59,712 48% 100% 8% 90% National 11% 80% Administration 13% 70% Expenditures Other 60% Debt Service 50% 50% 34% Payroll 40% Pensions Provincial Transfers Expenditures 30% 20% 34% 37% 10% 0% Municipal Expenditures 9% 0% Source: Abuelafia et al. (2005) Federal Budget Allocation. Average 1996-2004 Figures expressed in pesos of 2004 Provinces Real Per Capita Total Real Per Capita Real Per Capita Direct Budget Capital Expenditure Investment Underrepresented Advanced 977.8 83.7 10.7 Overrepresented 1264.5 155.3 45.5 Intermediate 1178.2 106.8 25.4 Poor 1154.3 153.0 47.4 Low density 1749.3 269.5 85.8 29% 85% 325% Low density provinces receive more Underrepresented districts receive increasingly more money than Poor provinces resources as we move to less rigid components of the budget Note: Underrepresented provinces: Buenos Aires, Córdoba, Mendoza, Santa Fe; Overrepresented provinces: Tucumán, Entre Ríos, Salta San Juan, San Luis; Formosa, Chaco, Santiago del Estero, Jujuy, Catamarca, La Rioja Misiones; Santa Cruz, Chubut, Río Negro, Neuquén, La Pampa, Tierra del Fuego. Advanced provinces: Buenos Aires, Córdoba, Mendoza, Santa Fe; Intermediate provinces: Tucumán, Entre Ríos, Salta San Juan, San Luis; Poor provinces: Formosa, Chaco, Santiago del Estero, Jujuy, Catamarca, La Rioja and Misiones; Low-Density provinces: Santa Cruz, Chubut, Río Negro, Neuquén, La Pampa, Tierra del Fuego.