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This paper focuses on the study of the current Federal Tax Sharing system in Argentina, demonstrating that it is in urgent need of modification, and allows for an equitable and supportive distribution of resources to all provinces. The relationship between the expenses faced by the provinces and their financing is inequitable, due to the fact that the decentralisation of expenses is not consistent with the centralisation of the national government's tax powers, which affects fiscal federalism and regional economies. The lack of unification of long-term fiscal objectives between the nation, provinces and CABA, as well as regional economic and political interests, are reasons for the problems.