Public finances and viticulture during lencinismo. Mendoza, 1923-1928

Abstract

This paper analyzes the governments of the "Lencinistas" and the federal intervention strategies carried on in order to reduce the recurrent fiscal deficit and the public debt by means of raising the taxes paid by the wine producers (who were experiencing a period of economic expansion). Official and public sources (legislation, governor messages, statistics, journals and reports) were analyzed for this research. It was concluded that the provincial debt was higher than it was expected. Nevertheless, the governments expanded the public spending but they did not always respect the legal norms. The winemakers resisted the tax hike, becoming one of the most powerful opponents to the "Lencinistas" governments. Although there were years when the wine tax went up, the grape producers suffered the most. At the end of the period, the taxes returned to levels close to 1923. The government had to diversify the rest of the taxes.