Argentina's provinces accumulated a primary deficit of 6.5%, deviating from the national government's surplus, while the fiscal deficit reaches 2.2% of GDP. The impact on local investors is significant, due to the volatility of the Argentine market and the dollar.
In a rare scenario in recent history, Argentina's provinces accumulated a primary deficit of 6.5% in 2025, according to a report highlighting the differences in provincial financial management. This represents a significant deviation compared to the national government's surplus.
The main provinces most affected are Buenos Aires, Córdoba, and Santa Fe, which accumulated primary deficits of 7.3%, 8.5%, and 9.2%, respectively.
These figures configure an unsustainable scenario and may imply greater pressure on the provinces' ability to pay in the future.
Causes of the Primary Deficit in Provinces
The primary deficit in the provinces is largely due to the decline in tax revenue, which resulted in a decrease in income entries.
In addition, public investment in these provinces decreased significantly in 2025, which also contributed to the primary deficit.
Impact on Local Investment
The volatility of the Argentine market and the dollar may have a negative effect on local investment, as investors may view the provinces' economic prospects with skepticism in the face of this unsustainable scenario.
In the next 30 days, it is likely that investors will continue to evaluate the provinces' financial situation and adjust their expectations based on the evolution of the primary deficit and tax revenue.