The total cut will be more than USD 2 billion, caused by the elimination or transformation of public agencies
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In the lead-up to the expiration of the delegated powers granted by the Bases Law, the Government announced a deep restructuring of the State.
The greatest impact will be concentrated in the areas of transportation and agriculture, where annual savings of $570.5 billion ARS ($1.25 billion USD) are estimated. This figure is part of a cut totaling USD 2 billion caused by the elimination or transformation of more than one hundred public agencies.
Transportation: cut and savings of $488 billion ARS ($1.07 billion USD)
The main cuts are concentrated in this area:
Closure of the National Highway Administration: represents savings of $440 billion ARS ($965 million USD).
Dissolution of the National Road Safety Agency: generates additional savings of $16 billion ARS ($35 million USD).
Transformation of CNRT into the new Agency for the Control of Concessions and Public Transportation Services: centralizes oversight and sanctions.
Transportation Safety Board becomes the Aviation Accident and Incident Investigation Agency, with functions limited to that sector.
El Gobierno ahorra $570 mil millones con el cierre de organismos en transporte y agro
Agroindustry: adjustment of $82.5 billion ARS ($181 million USD)
Agro-related agencies will also undergo significant cuts:
INASE becomes a directorate within the Secretariat of Agriculture, allowing for savings of $1 billion ARS ($2.2 million USD).
INV becomes an organizational unit and no longer entails an expense of $1.5 billion ARS ($3.3 million USD).
INTA will be a decentralized agency. According to the Government, it had 6,059 employees, 2,403 vehicles, 932 management positions, and an annual budget of $224 billion ARS ($491 million USD), but with revenues of $411 billion ARS ($902 million USD), equivalent to 47.5% of the revenue from corn export duties.
The Minister of Deregulation and State Transformation, Federico Sturzenegger, justified the changes by stating that the eliminated agencies imposed unnecessary costs and bureaucratic obstacles on the productive sector.
El Gobierno ahorra $570 mil millones con el cierre de organismos en transporte y agro
General changes in the structure of the State
In addition to the cuts in transportation and agriculture, the Government moved forward with:
The dissolution of historic agencies such as INADI, INV, INC, ENOHSA, and CNRT.
The privatization or conversion of state-owned companies such as Intercargo, Corredores Viales, Energía Argentina, YCRT, and Banco Nación.
The elimination of more than 30 trust funds, many of which had low execution levels.
Reforms in security forces and scientific and cultural agencies, including Malbrán, UIF, and the National Museum of Fine Arts.
The Executive Branch claims that these reforms were evaluated based on criteria of efficiency, functional necessity, and real service to the citizenry.
