# Bolivia President Rodrigo Paz reforms amid approval drop > Live situation record from CLSTR: https://clstr.news/situations/bolivia-president-rodrigo-paz-reforms > Updated: 2026-08-05T22:52:03.000Z. Sources: 12. Developments: 4. In early July 2026 Bolivia’s lower house approved President Rodrigo Paz’s revised budget, targeting a fiscal deficit of about nine percent of GDP through salary cuts and tax waivers for key sectors, while allocating extra funds to public universities. Opposition critics said the plan would not curb bureaucracy. In early August Paz reshuffled his cabinet, eliminating the Planning and Tourism ministries and reducing the total number of ministries. He later clarified that the executive would be trimmed from 21 to 12 ministries, arguing the cuts would curb wasteful spending, free resources for public works, and support new hydrocarbon and mining legislation. Critics warned that consolidating ministries could concentrate power and impair investment coordination. On 5 August Paz reiterated the reduction to 12 ministries and linked the streamlining to a need for greater efficiency. An Ipsos Ciesmori poll showed his approval plunging from 65 % in November 2025 to 32 % in July 2026, with disapproval rising to 55 %. The decline followed more than 50 days of nationwide road blockades that caused food, fuel and medical‑oxygen shortages, at least 16 deaths and economic losses estimated at roughly 5 % of GDP. The government declared a state of emergency and sought a $1.9 billion IMF program to stabilise the economy. On 5 August 2026 Paz met the governors of Bolivia’s nine departments in Sucre to advance his “50/50” decentralisation agenda, which would shift authority and resources to regional governments. The proposal includes financial autonomy for governors and municipalities, a new resource‑allocation formula, debt relief for sub‑national entities and a review of the legal framework governing them. Governors discussed projects such as investment in San Ignacio de Velasco and new road links with Brazil and Peru, while Santa Cruz governor Juan Pablo Velasco framed the talks as a demand for genuine decentralisation. ## Claims - President Rodrigo Paz reduced the number of ministries from 14 to 12. (corroborated by 3 sources) - Fernando Aramayo was appointed minister of the Presidency. (corroborated by 2 sources) - Vice President Edmand Lara said the reduction creates “super‑ministeries” that concentrate power and does not reduce bureaucracy. (corroborated by 2 sources) - Héctor Huanca was appointed minister of Foreign Relations. (single source) - José Luis Lupo was named ambassador to the Organization of American States. (single source) - Samuel Doria Medina said José Luis Lupo faced resistance from other ministers when trying structural changes. (single source) - Conade’s Marco Quiroga demanded concrete results from the new cabinet and called for direct coordination between Aramayo and President Paz. (single source) ## Timeline ### 2026-08-05: Bolivia President Rodrigo Paz advances 50/50 decentralization with governors Bolivia's President Rodrigo Paz and the nine departmental governors met in Sucre to push the 50/50 decentralisation agenda, aiming to cut central ministries, give regions fiscal autonomy and launch projectssuch 3 sources. https://clstr.news/cluster/bolivia-president-rodrigo-paz-advances-5050-decentralization-with-governors ### 2026-08-05: Bolivia President Rodrigo Paz Cuts Ministries Amid Plummeting Approval Bolivia’s President Rodrigo Paz slashed ministries from 21 to 12 to fund public works, while his approval plunged from 65% to 32% after prolonged road blockades caused deaths and a $3 billion economic hit. 3 sources. https://clstr.news/cluster/bolivia-president-rodrigo-paz-cuts-ministries-amid-plummeting-approval ### 2026-08-03: Bolivia President Rodrigo Paz Cuts Ministries in Half to Slash Bureaucracy Bolivia’s President Rodrigo Paz halved the cabinet, cutting ministries from 21 to 12 to curb waste, while the vice‑president warns the change may create powerful “super‑ministries”. 9 sources. https://clstr.news/cluster/bolivian-and-peruvian-lawmakers-call-for-cabinet-reshuffles ### 2026-07-05: Bolivia Lower House Approves President Paz's 2026 Budget Bolivia’s lower house approved President Paz’s 2026 budget, targeting a 9% deficit, cutting salaries, and waiving duties on key sectors amid recession, despite opposition criticism. 2 sources. https://clstr.news/cluster/bolivia-lower-house-approves-president-pazs-2026-budget --- Cite as: Bolivia President Rodrigo Paz reforms amid approval drop. CLSTR, https://clstr.news/situations/bolivia-president-rodrigo-paz-reforms