Distributive Impact of Provincial Budgets in Argentina

This paper explores the distributive impact of provincial budgets in Argentina (1991). Given that over 50% of provincial expenditures are financed with national transfers, the results can be applied to national transfers as well. The essay is highly speculative because quantitative analysis is based on scarce and not totally reliable data. Consequently, results are preliminary and challengeable. Our analysis warrants four conclusions: (1) Provincial budgets improve personal income distribution. (2) Both expenditures and financing are progressive in all provinces. (3) Important differences among provinces can be observed as regards the determinants (size and progressivity) of the impact of budgets on income distribution. (4) At the national level, provincial budgets and their financing are progressive and improve total personal income distribution