Colombia considers constitutional reform to decentralize power and boost local funding, sparking debate on economic risks.

Colombia's Congress is considering a constitutional reform to decentralize power and increase funding to municipalities and departments, aiming to transfer up to 39.5% of national revenue by 2039. While supported by most lawmakers for granting more autonomy, critics warn it could jeopardize fiscal stability, potentially increasing the debt-to-GDP ratio to nearly 65% by 2038. The bill, set for December debate, has sparked investor concerns over its impact on the country's economic health.

November 21, 2024
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