Government agrees with Buenos Aires to include debt payment in 2026 budget

The Argentine government has reached an agreement with the Autonomous City of Buenos Aires to include the payment of coparticipation debt in the 2026 Budget. This decision is expected to be part of the project that has already received a report in committee.

The agreement between the national government and the Autonomous City of Buenos Aires (CABA) represents progress in resolving the coparticipation debt. Reports indicate that this measure will be incorporated into the 2026 Budget project, which has already been favorably reported in the relevant committee of the Lower House. The negotiations, though not detailed extensively, reflect efforts to align finances between the central government and the capital. This step aims to regularize pending payments from the federal fund distribution, a recurring issue in Argentina's inter-jurisdictional relations. Exact amounts or implementation timelines are not specified in the available information, but the consensus points to prompt inclusion in the budget framework.

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Tense legislative debate in Chile's Chamber of Deputies over the government's megareform amid opposition amendments
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Chilean government pushes megareform timeline despite wave of opposition amendments

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The Chamber of Deputies' Finance Committee began on Tuesday the detailed discussion of President José Antonio Kast's reconstruction and economic reactivation megareform, amid tensions over more than 1,295 amendments filed by the opposition.

Javier Milei's government will authorize coparticipation fund advances to 12 provinces facing fiscal difficulties via decree, at a rate close to 15%. The measure addresses falling tax collections and aims to prevent salary payment issues. Officials note the rate is below market levels.

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The University of Buenos Aires' Superior Council unanimously demanded that the national government implement the University Financing Law and ratified the budget emergency for 2026. The action addresses the lack of budget updates, which do not cover inflation or essential expenses. This endangers the institution's teaching, research, and health activities.

Bus companies in the Buenos Aires Metropolitan Area (AMBA) declared an emergency over a $128 billion state debt and rising diesel prices. They threatened deeper frequency cuts, especially at night, if no deal is reached by Thursday, April 30. Services have already dropped up to 40%, per a UBA report.

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Following the U.S. appeals court's recent annulment of a $16 billion YPF expropriation ruling, Argentina gains partial relief from international litigation pressures. However, claims exceeding US$10 billion persist in cases involving debt, GDP-linked bonds, holdouts, Aerolíneas Argentinas, and related matters, amid reported government infighting.

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