The national government announced on Apr. 6 that it will distribute $400 billion in federal revenue-sharing advances to twelve provinces, while the province of Jujuy will not be included. The decision was based on each district’s ability to repay the funds.
The financial advances were made official through decree 219/2026 published in the Official Gazette. The measure aims to ease fiscal tensions among the districts and maintain political relations with provincial governors during ongoing negotiations.
The provinces set to receive these funds are Catamarca, Chaco, Chubut, Corrientes, La Rioja, Mendoza, Misiones, Río Negro, Salta, Santa Cruz, Tierra del Fuego and Tucumán. Notably, some opposition-governed areas such as those led by Ricardo Quintela of La Rioja and Gustavo Melella of Tierra del Fuego are included in this allocation. This inclusion reflects both the complexity of current political dynamics and the government’s effort to prevent conflicts that could affect President Javier Milei.
The assistance involves up to $400 billion as advance payments from federal revenue sharing. These amounts must be repaid within the same fiscal year. The Ministry of Economy’s Secretariat of Finance will determine how much each jurisdiction receives based on its repayment capacity and share in national tax collection.
Repayment is structured through automatic deductions from future revenue-sharing transfers along with a fixed annual nominal interest rate of 15 percent. Specific terms for disbursement and repayment can be negotiated between economic authorities and each province individually.
To access these advances—as reported by Ámbito—provinces must authorize national authorities to deduct resources until all principal plus interest is repaid. They also need to commit their participation under Law 23.548 or other relevant distribution regimes for shared resources.
This decision comes amid a challenging period for provincial finances marked by eight consecutive months of declining revenues; official estimates indicate first-quarter income dropped nearly one trillion pesos compared with last year’s same period. Provincial officials describe conditions as critical due to falling incomes and rising labor demands: “La situación es dramática, están todos preocupados,” they said.
Meanwhile at Casa Rosada—the seat of government—officials are working on electoral reform projects while considering conciliatory gestures toward governors in hopes of securing support in Congress.
