Santa Cruz mayor pushes staff cuts and budget reform to address municipal debt

The municipal administration of Santa Cruz de la Sierra is undertaking a major fiscal overhaul. Erwin Bazán, director of Institutional Strengthening and Autonomies, said the city will reduce its workforce by about 2,000 employees within the first year. The move targets excess staff and aims to rationalise administration rather than constitute mass layoffs. He noted the city inherited “a complex economic situation, with debt exceeding Bs 2.7 billion and a monthly deficit of Bs 90 million,” adding, “Aquí no se trata de anunciar despidos masivos. Lo que hay que hacer es racionalizar la administración pública.”

Mayor Manuel Saavedra simultaneously urged rapid approval of a reformed 2026 General State Budget (PGE). The proposal creates a Bs 2.2 billion fund for all autonomous territorial entities, providing immediate liquidity to municipalities and governorships to prevent the paralysis of infrastructure projects and maintain essential public services. Saavedra told reporters the fund would “give us oxygen until the end of the year.” Both initiatives aim to stabilise the city’s finances and improve service delivery amid a severe fiscal crunch.