(Bloomberg) -- Colombian lawmakers reinstated spending limits intended to curb the cost of a controversial bill that boosts budget transfers to the country’s regions.
The project, which has stoked fears among investors over its fiscal cost, was amended once again as it moves toward its final debate in congress. The new version adds back provisions meant to ensure that the transfer of central government revenue to regions doesn’t jeopardize the nation’s fiscal targets.
In previous discussions, the constitutional committee of Colombia’s lower house had removed that requirement on spending limits from the bill, which aims to increase transfers to regional authorities by more than half to 39.5% of central government revenue by 2039.
The new version also states that authorities must specify which expenses are no longer going to be the responsibility of the central government and will be moved to the regions.
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