Bolivia's 50-50 fiscal proposal discussed at Sucre summit

President Rodrigo Paz will convene a national summit in Sucre on 5 August to examine the so‑called “50‑50” fiscal proposal, which aims to reshape the distribution of public resources between the central government, governors and municipal authorities. The meeting will bring together the country’s nine governors, mayors from across the departments and senior officials to debate the model’s specifics, including a temporary return of 12 % of the hydrocarbon direct tax to municipalities and a review of regional royalty shares.

The proposal, a campaign promise of President Paz, remains without a detailed methodology, timetable or mechanism for reallocating competencies, prompting concerns from experts that a simple revenue split could spark conflicts between levels of government. Officials see the summit as an opportunity to forge a consensual fiscal pact that could alleviate the ongoing fiscal strain on local governments while preserving national budget stability.