Bolivian Mayors Demand Seat at Table for Resource Redistribution Talks

Following an agreement between the Bolivian government and nine governors in Sucre, mayors across the country are now demanding inclusion in the "50/50" resource redistribution program. They are calling for a meeting with President Rodrigo Paz to discuss their participation in shaping the new fiscal model.

Manfred Reyes Villa, the mayor of Cochabamba, stated emphatically, "There will be no 50/50 without the mayoralties." He highlighted the significant responsibilities held by municipal governments, including education, healthcare, basic services, public lighting, and infrastructure, underscoring their need for increased financial resources. Reyes Villa announced that mayors intend to convene on September 14, coinciding with Cochabamba's anniversary of the libertarian feat, to formulate a common stance on their cities' needs.

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There will be no 50/50 without the mayoralties.

This demand arises after the August 5 meeting in Sucre, where the executive branch and governors committed to developing a special law for fiscal resource co-participation and distribution, aiming for the new scheme to take effect from the 2027 General State Budget. Unlike departmental governments, municipalities already receive a share of national taxes, with the current model allocating 20% of effective national tax collection to them, primarily based on population.

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We are the mayors who will meet and make decisions about what our cities need.

Municipalities are facing financial pressure not only from potential fluctuations in national tax collection but also from a significant drop in revenue from the Hydrocarbons Direct Tax (IDH). For 2026, the projected co-participation for the 334 municipal governments and eight indigenous peasant original autonomies is Bs 8.908 million, a modest increase of Bs 61 million from 2025. However, municipal IDH resources have decreased from Bs 1.848 million to Bs 1.399 million, a reduction of Bs 449 million. The nine departmental capitals and El Alto are projected to see a 16.6% decrease in these funds.

In response to these challenges, Johnny Torres, the president of the Federation of Municipal Associations of Bolivia (FAM) and mayor of Cercado in Tarija, sent a letter to President Paz requesting an audience. The agenda includes establishing a framework for the "50/50" program and ensuring municipal representation in fiscal reform discussions.

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There must be a meeting with the mayors of the country, just as there was with the governors of the nine departments.