Bolivia’s poor fiscal budget execution during 2010

As you can see in Pagina Siete’s report (Aug 25, 2011), Bolivian public sector lack of expenditures is growing over the years, as the red columns show for 2008 to 2010. The chart above that graph lists: central government (36.6%), departmental governments (20.7%), municipalities (30.6%) and other public institutions (percentages in parenthesis represent current budget execution).

Between 2008 and 2010, unexecuted budget grew from Bs10,577 to Bs13,826 million (average exchange rate is $1 dollar to Bs7.96).

Some of the reasons for that low execution are lack of appropriate and qualified personnel; excessive turnover of experienced civil servants with party affiliates; corruption; fights among council members over projects or priorities; forceful changes of elected officials and central government appointed persons in replace of those removed; unclear regulations and norms that force authorities to be extremely cautious at the time of awarding contracts.

http://www.paginasiete.bo/2011-08-25/Economia/Destacados/10Eco001250811.aspx

Just as an example, over the last three days in Santa Cruz city, neighbors of the gasoline, diesel distribution plant (Palmasola) have been blockading that access in demand of a better paved avenue between the 5th ring and that plant. The rest of the cruceno society have to endure those blockades and at times experience shortage of their fuel supply because some citizens block, the municipality says that infrastructure will be done in 2012, while neighbors say it was in the budget some years ago and nothing materializes.

So there is funding, we lack proper regs and qualified personnel to execute!!

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