Bolivian Municipalities Demand Repeal of Decree Funding Eduardo Abaroa Prize

Municipalities across Bolivia are urging the government to revoke a decade-old decree that they argue unfairly siphons off their revenue. The Federation of Municipal Associations (FAM) is leading the charge, demanding the review and annulment of decrees that have reduced the Integrated Direct Taxes (IDH) allocated to local governments.

Specifically, FAM president Johnny Torrez pointed to Decree 859 of 2011, which established the Fund for the Promotion of Civic-Patriotic Education. This decree mandates the retention of 0.02% of the IDH from municipalities to finance this fund. Torrez stated that this measure represents an imposed competency that diminishes municipal income, and they are calling for its termination.

The funds originally earmarked for municipalities were redirected to finance various prizes organized by the central government, such as the prestigious Eduardo Abaroa Prize, managed by the Ministry of Cultures. While the exact amount of reduction was not disclosed, Torrez emphasized that this 0.02% contribution, when it was a substantial portion of municipal budgets, has led to a significant decline in their overall IDH allocation.

Torrez explained that these decrees, like 859, funded central government activities. Technical committees are being formed to identify alternative resource streams. The government has acknowledged a significant reduction in IDH revenues, noting that the total IDH for municipalities this year will reach Bs 1.399, a stark contrast to previous years. The municipalities' demand underscores a broader concern about fiscal autonomy and the equitable distribution of national resources.

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There are competencies that municipal governments have assumed and that are definitively imposed by a decree or a law that previous governments applied, for example, a debit that is made for the Civic Patriotic Fund. That decree that gives validity to the Civic Patriotic Fund must end.