Bolivia's 50/50 fiscal reform proposal gains momentum

Governor Juan Pablo “JP” Velasco of Santa Cruz took part in a folkloric procession in La Paz, using the occasion to call for the implementation of the 50/50 fiscal redistribution plan that would allocate a larger share of national tax revenue to regional governments.

The proposal is now on the national agenda ahead of a scheduled meeting on 5 August in Sucre between President Rodrigo Paz Pereira and the nine departmental governors. Officials plan a technical session beforehand to flesh out details, with many governors urging that the scheme begin in the 2027 fiscal year. The president framed the debate as a broader effort to shift Bolivia from a centralized to a more regionalized state, calling for a “great alliance” beyond partisan interests. Regional leaders, including La Paz Governor Luis Revilla and Chuquisaca Governor Luis Ayllón, have already approved related measures in a July 16 session in El Alto, aiming for a gradual rollout of the new coparticipation formula.