Bolivia earmarks 2.5 bn bolivianos for subnational entities in 2026 budget

The 2026 General State Budget approved by Bolivia's Plurinational Assembly allocates roughly 2.5 billion bolivianos to subnational bodies – about 1.4 bn for governorships, 600 m for municipalities and 410 m for state universities. The removal of fuel subsidies generated an additional 14 bn bolivianos in state revenue, of which the government will retain just over 7 bn.

President Rodrigo Paz signed the new Budget Law, which also orders the Office for the Strengthening of the Public Enterprise (OFEP) to evaluate all central‑level public companies within 30 days, recommending continuation, reorganization, dissolution or liquidation. Fifteen firms are in technical bankruptcy, with cumulative losses of 3.637 bn bolivianos, including the state gold producer EPCORO and the agricultural firm B‑Agro.

The budget projects sub‑1% economic growth, 14% inflation and a fiscal deficit equal to 9% of GDP, while cutting public investment by 4.8 bn bolivianos and current spending by 4.1 bn. It also creates more than 6,800 new line items, directing 3,000 bn to education and 2,355 bn to health. An IMF loan of about $1.9 bn is expected to be approved soon, providing a further economic boost.