INCAA does a lot of different things.
For instance, it catalogs and preserves argentine films. They have copies of over 10,000 films, many of which otherwise would not exist.
So its a library.
It also has a program of showing films in prisons and in schools, for free, to the inmates and students.
So its a part of the educational and rehabilition system (and, of course, poor people DO go to prison and to public schools)
They support, with some grants, along with technical assistance and loans of film, Museums who show film around the country.
The have an awards program which helps publicize Argentine film, and encourage young filmmakers.
And, yes, they give grants to filmmakers- although, often, in pretty small amounts.
Here, for an example, is the list of subsidies for December- some significant, some as small as 37,000 pesos.
I dont know how many second rate and mediocre writers and directors they fund, but I kinda doubt any of them are actually living on INCAA grants. Most of the money goes right out of the wallet to pay for the films.