| Work Detail |
The paralysis of national public works projects is the biggest point of tension between Javier Mileis government and the provinces. Governors of different political persuasions, especially those considered to be in favor of dialogue, are seeing their hopes for economic recovery frustrated , as a key electoral agenda is also at stake. The new agreement with the IMF , which raises the primary surplus requirement from 1.3% to 1.6% of GDP, further complicates any possibility of recovering infrastructure investments. Although some discretionary transfers increased in the first months of the year – mainly due to payments – mainly due to judicial payments to CABA – the funds allocated to public works remain well below the historical average , which blurs any real positive effect in the territories. According to official data, the Real Direct Investment ( IRD ) paid (IRD) in the first quarter of 2025 was $ 127,328 million , 101.8% more in real year-on-year terms, but 53% lower than the average recorded since 1995 . The most affected component continues to be construction ( road, hydraulic, educational, and sanitary works), which registered an increase of 64.9% compared to 2024, although its share fell from 67.3% to 55.5% of the total IRD. In several provinces, this item represents 100% of national public investment; however, in La Pampa, La Rioja, San Luis, and Chubut, no execution was recorded so far this year. Guarantees without execution and judicialization of projects Several governors, after individual efforts, succeeded in getting the Ministry of Economy to authorize guarantees for borrowing for public works projects, but most were never executed . Macroeconomic uncertainty, difficulties in the international market, and short terms for local financing prevent the provinces from moving forward smoothly. A paradigmatic case is that of Highway 19 between Córdoba and San Francisco, a project financed by the IDB , which was transferred from the National Government to the province and ended up in court . The U ended up in court. The UTE in charge of the works reported irregularities to the multilateral organization due to the termination of the contract and the rebidding process during the transition. The Argentine Chamber of Construction clarified that this is an exceptional case, but recognizes the systemic risk involved in terminating contracts with external financing . Growing distrust and political reconfiguration The growing discontent among provincial leaders is already translating into concrete gestures: some allied legislators are distancing themselves from the party in Congress , and others are conditioning their future support on changes in the executive branchs strategy. The case of Catamarca Governor Raúl Jalil is illustrative: his deputies granted a quorum to authorize the commission investigating the LIBRA scandal, marking an unexpected shift in his relationship with the Casa Rosada. In this scenario, the halt in public works not only represents a budget conflict , but also a loss of territorial capacity to demonstrate management, in a year where governors also face their own electoral calendar. In many cases, key provincial projects remain paralyzed , or at best, are advancing slowly thanks to international financing or their own funds . The risk is clear: an infrastructure investment crisis that impacts employment , competitiveness , and basic services, with direct effects on the population and political consequences for all levels of government . |
