Bolivia faces fiscal strain as Tarija revenue drops and gold reserves fall

The government of the Tarija department in Bolivia relies on hydrocarbon royalties for more than 80% of its budget. Falling natural‑gas export revenues have left the regional treasury unable to meet its debt service obligations – a total of 72.8 million bolivianos for 2026, of which only 33% had been paid by May. The department is seeking to renegotiate payments to the National Regional Development Fund (FNDR), which is owed 23.38 million bolivianos, to avoid a liquidity crisis and to restructure its broader fiscal plan.

At the national level, the Central Bank of Bolivia reported that a recent pignoration operation used 4.3 tonnes of gold to secure foreign‑exchange needed for urgent external debt service and fuel imports. The sale reduced the country’s gold reserves by about US$586 million, though the bank said monetary reserves remain unaffected and the minimum legal gold reserve of 22 tonnes has been maintained.