| Work Detail |
According to the Monthly Spending Adjustment Monitor prepared by the consulting firm Analytica , the National Government reduced public works investment by 52.1% during the first five months of 2025, compared to the same period last year and at constant prices. This cut positions public works as one of the most affected sectors in the state spending adjustment. The report reveals uneven performance across budget lines. While some areas experienced significant increases, others—such as infrastructure, social programs, and energy subsidies—suffered sharp declines. Overall, accrued primary spending by the national government fell 4.1% in May compared to the same month last year, although it has accumulated a slight increase of 4.2% so far this year. In addition to the infrastructure cuts, the survey highlights a 20.7% drop in social programs and a 60.3% collapse in economic subsidies. Within the latter category, energy subsidies fell by 70.8%, reflecting a sharp shift in fiscal policy aimed at reducing state spending in areas traditionally strategic for development. In contrast, the report notes that there were notable increases in other budget items. Current transfers to provinces increased 95.1% year-on-year, with a peak of 295% in National Treasury Contributions (ATN). The jurisdictions that benefited most in May were Salta, Santa Cruz, Santa Fe, and Tucumán. Family allowances (+24.8%) and retirement and pension benefits (+20.7%) also increased, driven especially by the increase in the Universal Child Allowance (AUH), which climbed 33.8%. Regarding health spending, a significant contradiction can be observed: while the Ministry of Health increased its spending by 53.1% in May, the cumulative total from January to May saw a 9.8% drop. This decrease includes cuts in transfers, reduced personnel spending, and a significant adjustment in decentralized agencies. The National Cancer Institute, for example, saw its budget reduced by 56.5% year-over-year. The adjustment in national public works has direct implications for the execution of strategic infrastructure projects and the maintenance of employment in the sector, which has already recorded an estimated loss of more than 120,000 jobs in the last year, according to data from the Argentine Chamber of Construction. |
