Bolivian government offers 1% tax redistribution to departments

The Bolivian government has proposed allocating 1% of tax co-participation to the nine departmental governments, a move intended to serve as an initial step toward a 50/50 resource redistribution model. The proposal, discussed in a meeting between national ministers and governors, is estimated to distribute approximately Bs 460 million among the departments starting in 2027.

The offer has met significant resistance from several regional leaders. Luis Revilla, the governor of La Paz, viewed the increase from an initial 0.4% offer to 1% as a step forward given the current economic climate. However, Santa Cruz Governor Juan Pablo Velasco rejected the proposal, calling it a lack of respect and noting that his department contributes 40% of the national GDP and 80% of food production.

In Tarija, Governor María René Soruco criticized the proposal, stating that autonomy is non-negotiable and expressing concern that the funds are conditioned on health sector items. Regional leaders argue that the current system, where 75% of co-participation remains with the central government, fails to address the needs of productive and populated departments.