Bolivia: 100 municipalities may close without government economic aid, warns mayor

Dozens of municipalities across Bolivia are on the brink of closure, with over 100 local governments potentially shutting down if the central government does not provide crucial economic assistance. The Association of Municipalities of Tarija (AMT) has warned of this dire situation, highlighting the severe financial strain on local administrations.

Johnny Torres, the mayor of Cercado and president of the AMT, stated that many municipalities, especially smaller ones, are facing extreme financial hardship. They lack the necessary income to cover basic operational expenses and fund essential public investments. Even larger municipalities are finding it incredibly difficult to survive under the current financial conditions.

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The large municipalities will manage to survive very difficultly, compared to the small ones which are in a very serious condition.

Torres plans to use a meeting with President Rodrigo Paz on August 5 in Sucre to demand the return of 12% of the hydrocarbon tax (IDH) revenue. This portion was previously confiscated for the Fund for Investment in Hydrocarbon Exploration and Exploitation. He believes that restoring these funds is essential for municipalities to operate with relative stability until December.

If the government fails to return the confiscated resources or provide alternative support, Torres warned that at least 100 municipalities could be forced to close. He also suggested that the government should assume its own responsibilities and obligations, allowing municipal governments to manage what is rightfully theirs. Currently, out of Bolivia's 340 municipalities, approximately 250 are facing significant financial viability issues due to a lack of liquidity.

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If that is not the case, at least 100 municipalities in the country will close.