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Bolivian Municipalities Demand 50/50 Resource Split and Return of Withheld Funds
🇧🇴 Bolivia /Economy & Trade

Bolivian Municipalities Demand 50/50 Resource Split and Return of Withheld Funds

From El Deber · () Spanish

Translated from Spanish and summarized by DistantNews. Read the original for the full story.

At a glance

News Named sources Context piece
  • Bolivian municipalities are demanding a 50/50 split of national resources with the central government and the return of withheld hydrocarbon tax funds.
  • They also seek government action to address the persistent fuel crisis affecting their productive activities.
  • The Association of Municipalities of Santa Cruz (Amdecruz) proposed incorporating the 50/50 model into the 2027 General State Budget.

Municipal governments in Bolivia are presenting a unified front, demanding significant changes to resource allocation and urging the national government to address pressing economic issues. Key among their demands is the implementation of a 50/50 resource distribution model, a significant shift from the current centralized system. This proposal, championed by the Association of Municipalities of Santa Cruz (Amdecruz), aims to ensure a more equitable share of national revenue for local governments.

Our proposal is that the 50/50 must be incorporated into the General State Budget for next year.

— Neptaly MendozaStating the core demand regarding resource allocation.

Neptaly Mendoza, president of Amdecruz and mayor of Porongo, described the recent meeting with national authorities as positive. He stressed the urgency of incorporating the 50/50 proposal into the 2027 General State Budget. This initiative seeks to fundamentally alter how resources are divided between the central state and subnational entities, particularly as municipalities grapple with financial constraints that hinder their ability to meet obligations and undertake development projects.

Minister of Economy Cristian Morales acknowledged the importance of the discussion, framing the municipal proposal within the government's broader federalization agenda. He stated that the Executive is committed to "paving the way towards 50/50," emphasizing the need for coordinated efforts across different government levels. Technical working groups will be established to analyze the proposals, with discussions on the 50/50 model expected to continue until September 15.

We are closing a long stage of centralism.

— Cristian MoralesDescribing the government's approach to decentralization and resource sharing.

Beyond resource distribution, municipalities are also demanding the return of 12.5% of the Hydrocarbon Direct Tax (IDH) that they claim has been withheld for years. Mendoza argued that these funds were originally earmarked for specific investments related to oil activities but were not used for their intended purpose. Furthermore, the persistent fuel crisis, impacting agricultural, livestock, and industrial activities, has been added to the negotiation agenda. Municipalities report significant difficulties in accessing gasoline and diesel, which are essential for their productive operations.

We are municipalities with high productive potential, agricultural, livestock, and industrial, and there is no fuel. We have...

— Neptaly MendozaHighlighting the impact of the fuel crisis on municipal economic activities.
About this summary

Originally published by El Deber in Spanish. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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