[REVISION HISTORY]

Bolivia President Paz faces legislative pushback amid reform

Updated 11 times since CLSTR started tracking revisions of this situation.

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2026-08-27 05:21 UTC → 2026-08-27 13:09 UTC · added ~~removed~~

In July 2026, Bolivia’s lower house approved President Rodrigo Paz’s revised budget, targeting a deficit of approximately nine percent of GDP through salary cuts and tax waivers. Amid nationwide blockades that caused shortages and economic losses, Paz reshuffled his cabinet, reducing ministries from 21 to 12. He criticized the previous administration for having officials who were “much flojo” (drawing salaries without working), though Vice President Edmand Lara warned this might merely consolidate power into “super-ministries.” On 5 August, Paz advanced his “50/50” decentralization agenda to grant financial autonomy to regional governments and announced the creation of an Alto Comisionado for Institutional Integrity and Justice to coordinate anti-corruption efforts. He also introduced a six-point roadmap including a draft Investment Law and new hydrocarbon and mining frameworks. By mid-August, Paz faced intense legislative criticism. Opposition leaders accused him of encouraging “transfugismo”—the defection of legislators to support the government. On 21 August, Paz dismissed Economy and Public Finance Minister José Gabriel Espinoza following a legislative censure on 18 August. The censure was triggered by Espinoza’s failure to attend hearings regarding the economic crisis and alleged fund irregularities. While the government challenged the validity of the censure, Christian Morales Burgos has since been appointed as the new Minister of Economy and Public Finance. Morales is tasked with stabilizing the economy and securing between US$7 billion and US$10 billion in international financing to address debt and shortages. Simultaneously, the administration faces scrutiny regarding Fernando Cerimedo, an Argentine political consultant detained in Bolivia on charges of attempted femicide. While President Paz maintains Cerimedo had no official contract to represent the government, Vice President Lara and the alleged victim, Nadia Beller, have challenged this, alleging he maintained significant influence within the administration.

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