Argentina is a Federal Republic made up of two sub-national levels of government: The Provinces and the Municipalities. The Provinces, by constitutional mandate, have full autonomy to define their municipal regime through their Constitution and the Municipal Organic Law. The provincial authorities can create indirect taxes or delegate this power to the municipalities, which generally charge fees and contributions for their municipal treasury.
Among the main sources of the subnational government’s resources are the transfers by Federal Co-participation of the country's income, as well as the collection of various municipal taxes. As a complement, new regulatory frameworks have been established to promote Public-Private Partnerships, as well as a consecration of cooperation from international funds. Local governments also have access to credit operations as an alternative source for financing urban development projects.
According to the OECD, Argentina is one of the most decentralized countries in the Latin American region. Subnational governments are highly involved in the design and implementation of public policies and provision of public services. The powers assigned to local governments and municipalities vary from province to province and depends on each provincial constitution, but generally municipalities are responsible for urban planning, land zoning, maintenance of urban infrastructure, and public transport and the regulation of public roads.