Chaco ended the first half of 2026 with positive fiscal accounts, but achieved them through the sharpest spending cut among the four Northeast provinces. Provincial expenditure fell 15.2% in real terms from the same period of 2025, while revenue declined 5.7%. The gap reversed the previous year's negative balance and placed Chaco within the region's consolidated surplus.
The NEA as a whole collected ARS 8.1 trillion and spent ARS 7.9 trillion. It produced a financial surplus of ARS 147.658 billion, equal to 1.8% of revenue, and a primary surplus of ARS 248.311 billion, or 3.1%. One year earlier, the region had recorded deficits of 2.1% and 0.9%. The improvement came not from growing revenue but from expenditure cuts larger than the loss of resources.
Regional revenue fell 4.7% in real terms, a loss of ARS 423.133 billion at June prices. Almost nine of every ten pesos lost were linked to tax collection. Provincial taxes declined 13.7% and nationally sourced revenue 3.2%. Chaco lost ARS 152.862 billion in real income; lower taxes and social-security contributions accounted for 96% of that deterioration.
Chaco responded by compressing almost every major budget component. Total expenditure fell by a real ARS 443.057 billion. Personnel spending dropped 17%, a reduction of ARS 238.943 billion that explained more than half of the province's adjustment. Pension benefits, transfers to the public sector, purchases of goods and services, and capital expenditure also declined, extending the effort across wages, operations, assistance and investment.
The other Northeast provinces used different combinations. Misiones reduced spending by 6.4%, Corrientes by 4.9% and Formosa by 3.8%. Corrientes was dominated by a 53.2% fall in capital expenditure while payroll spending increased. Formosa also cut investment and raised personnel expenditure. Misiones reduced wages and transfers, although capital and non-personnel services showed slight gains.
The comparison shows different paths to the same accounting outcome. Formosa and Misiones maintained surpluses already achieved in 2025, while Chaco and Corrientes moved from deficit to positive territory. In Chaco, expenditure fell at almost three times the rate of revenue. That mechanism improves the financial balance but shifts the debate toward which services, investments and state capacities were affected.
The report does not by itself measure the quality or social consequences of the adjustment, but it identifies its location. Personnel and pension benefits represented a substantial share, while public investment declined again. In a provincial economy dependent on public employment, transfers and construction, those items affect consumption, suppliers and activity. The surplus describes immediate solvency; it does not prove that the path is sustainable without weaker services or growth.
The second half will show whether Chaco can preserve the result with still-weak revenue or needs further cuts. It will also reveal whether capital spending recovers and whether national transfers regain purchasing power. The province balanced its half-year accounts, but the decisive test is turning that balance into a stable fiscal structure capable of financing operations and investment without returning to deficits or deepening austerity.
