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Budget 2025: Government allocated almost a third of public works to housing, in addition to financing 280 construction loans.
Investment in houses will be close to 70 billion pesos, while the amount allocated to construction reaches 249,143,369,000 pesos. In loans, there will be 18,460,000,000 pesos.
Since taking office, Governor Marcelo Orrego has been emphasizing the need to support public works, in contrast to the policy of the libertarian president Javier Milei. And, within that area, the completion and construction of houses has been one of the mainstays of the current administration. This idea is reflected in the 2025 budget, since the amount allocated to finishing and building houses takes up almost a third of the financing for public works, with nearly 76 billion pesos. This is not the only thing, since the project contemplates the calculation to grant 280 IPV credits to build homes.
These are details of a topic that generates a great demand among San Juan residents, since, according to the director of IPV, Elina Peralta, there are about 90 thousand registered in the housing agencys registry.
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0264 Noticias had reported that the first budget project of the Orreguista administration contemplated a total of expenses and resources of 2,365,531,287,000 pesos, that is, 2.3 billion pesos. The figure is exorbitant, due to the impact of inflation in recent years. The last budget that was drawn up was during the Uñaquista administration and was for 2023, which was 514,835,177,000 pesos, which means an increase of 356 percent compared to the current one.
In 2024, there was no projection of expenses and resources because Milei decided to extend his at the national level and this had an impact on the province, which took the same path. Now, the president is heading towards an extension of the budget, but Orrego and the team from the Ministry of Economy, led by Roberto Gutiérrez, decided to prepare the local forecast.
The budget is known as the law of laws, since it considers how a State obtains and manages its income, what priorities it defines and to which areas it allocates spending or investment.
The expenditure was estimated at 2,347,475,251,000 pesos. This item is divided into current and capital expenditure. The first is the one that covers, for example, the payment of salaries and is in the order of 2,008,115,583,000, which represents 85.54 percent of the total. The second is the one that covers the expenses destined "for the acquisition or production of material goods and financial investments that increase the assets of the State and serve as an instrument for the production of goods and services. Capital expenditure was planned at 339,359,668,000 pesos, which means 14.46 percent of the total.
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Current expenditure includes what is known as direct real investment, that is, the financing of public works. According to the budget project, these are expenses that “include investments in buildings, facilities, constructions and equipment that are used to produce other goods and services.”
That budget is estimated to cost 249,143,369,000 pesos, of which some 76,000,000,000 will go to housing construction, said the Minister of Economy, Roberto Gutiérrez. That is, 30 percent of what is allocated to public works, or almost a third.
The budget message highlights “the elimination of all contributions by the National Government to the construction of housing.” For this reason, the Orreguista administration will finance the completion with its own funds. “This is why, by 2025 and 2026, it is expected to complete all the works in progress, which amount to approximately 2,970 homes, and begin the execution of some 200 new housing solutions.”
These are figures that this media had previously reported through definitions by the Minister of Infrastructure, Fernando Perea, and the director of the IPV. The head of the works portfolio had said that next year he plans to deliver some 1,250, while the official had added that the rest would be completed in 2026. Perea had also announced that they plan to build the new 200 houses through a public-private investment plan. Meanwhile, 1,012 homes have already been completed this year.
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This whole scheme is being carried out after the reactivation of 47 neighborhoods that had been halted due to the cut in national funding for public works, which had been between 70 and 100 percent of the houses.
This is not the only thing, as the text of the budget project states that “the Financial Assistance for the individual construction of housing, by those who own a plot of land in their name, is estimated to finance a total of 280 new constructions, in addition to continuing with the financing of those currently under construction.”
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The so-called Financial Assistance or individual operation is none other than the IPV credit line, which has a very accessible interest rate. In the text of the project, it is highlighted that “the Provincial Housing Institute plans to grant loans for the construction of housing for 18,460,000,000 pesos.” This financing is found in the Financial Investment category, within capital expenses.
On the other hand, the Financial Investment item also “has projected the sum of 3,435,373,000 pesos to grant loans for the financing of SMEs” under the San Juan Investment Development Agency.
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The budget message also highlights the “recovery of long-term loans to the private sector for a total of 6,089,457,000 pesos, with the Recovery of Loans granted by the Provincial Housing Institute for 6,000,000,000 pesos (individual and neighborhood housing construction operations) and by the San Juan Investment Development Agency for 89,457,000 pesos being of relevance.”
As for other public works mentioned, there is the construction of the new penitentiary unit No. 6, a Monitoring Center and a new entrance and search for Units 1 and 5 in the Chimbas Penitentiary. There is also the construction of the Training Center of the Police Instruction School, the completion of the Sierras de Marquesado Police Station in Rivadavia; the 21st Police Station in Jáchal; the 8th Police Station in Sarmiento and the reactivation of the San Isidro Operating Unit in San Martín.
As for resources, these amount to a total of 2,347,554,958,000. If financial sources are added, they rise to 2,365,531,287,000, in line with expenses, given that the initiative proposes a balanced budget.
Among the resources, there are those called Current and Capital. Among the former, “the most relevant” are “Tax Resources”, which reach 2,045,528,500,000 pesos, representing 87.13% of the total. Of this last figure, “Tax Revenues of Provincial origin reach the sum of 279,408,000,000 pesos (11.90%)”, while “Tax Revenues of National Jurisdiction reach the sum of 1,766,120,500,000 pesos (75.23%)”. The latter are part of the federal tax sharing.
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Among provincial taxes, the Government aims to collect 203,522,000,000 pesos in Gross Income, 30,172,000,000 in Automotive (patents), 12,784,000,000 in Real Estate and 20,028,000,000 pesos in Stamps.
Then, there are the Capital resources, which were budgeted at 47,980,656,000 pesos. Among them, the local Executive highlighted the “Capital transfers from the national Government for investment in works, which have been budgeted at the sum of 31,365,315,000 pesos. Due to their relevance, the following are cited: the Transfers provided by Law 1719-1 Fiscal Consensus for general infrastructure works for 27,703,000,000 pesos; Improvement of Technical Professional Quality for 1,010,000,000 pesos and Return to the Classroom for 1,016,085,000 pesos, among others.”
On the other hand, the project estimates the co-participation to be distributed among the municipalities. A total of 237,522,787,000 pesos is expected, a sum from which must be subtracted the 5 percent corresponding to the Municipal Emergency Fund (FEM) and the 3 percent of the Regional Development Fund (Fodere), which is applied to works. Thus, the 19 municipalities will receive a total of 218,520,963,000, depending on their co-participation rates.
In turn, the FEM is expected to pocket a total of 11,876,140,000 pesos, while the Fodere will reach 7,125,684,000 pesos. |
