Paraguay's MEF transfers US$334 million to local governments by July

Paraguay's Ministry of Economy and Finance (MEF) has disbursed more than G. 2 trillion (US$ 334 million) to provincial governments and municipalities as of the end of July this year. These significant transfers are intended to support local governance and development.

The funds originate from various sources, including royalties, Value Added Tax (VAT) from the Treasury's resources, gambling taxes, and other forms of compensation. This diverse funding stream highlights the MEF's role in distributing national revenue to sub-national entities.

Provincial governments received the larger share, totaling G. 1.408 trillion (US$ 234 million), while municipalities received G. 595.837 billion (US$ 100 million) during the first seven months of the year. The MEF emphasizes transparency, providing a public website where citizens can track the amounts received by their respective local governments.

To ensure the proper use of these funds, both provincial governments and municipalities are required to submit their accountability reports and quarterly updates to the MEF. Failure to comply with these legal requirements, as outlined in the General Budget of the Nation and its regulatory decree, will result in the suspension of financial transfers until compliance is achieved.