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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.
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Colombia considera que la reforma constitucional descentralizará el poder e impulsará el financiamiento local, provocando un debate sobre los riesgos económicos.