Bolivian congress rejects additional municipal funding for drought, forest fires

Bolivian municipalities have been forced to take a financing hit after the lower house of congress rejected a budget amendment that would have provided them with additional funds to address drought and forest fires, among other issues. 

The bill, which would have added 5.42bn bolivianos (US$785mn) to the 2023 budget, was voted down by the opposition, as well as some members of the ruling MAS party that support former president Evo Morales.

The party is currently split by a dispute between backers of Morales and those who endorse the current administration led by President Luis Arce. 

The bill included 868mn bolivianos (US$126mn) in additional funds for municipalities from the economy ministry, which later said on social media that the vote against the amendment was an “irresponsible act against the people”. 

Some local mayors traveled to La Paz to observe the vote held on Monday, local media reported. 

“All of the country’s municipalities, including those in capital cities, urgently require the approval of the bill, not only to address the emergency [caused by drought and forest fires], but the debts to financiers and companies that are building public works have to be dealt with, and these resources will be used to cover the counterparts for investment projects,” Pedro Dorado, mayor of San Miguel municipality in Santa Cruz department and vice president of the Santa Cruz municipalities association Amdecruz said before the vote. 

The forest fires have prompted neighboring Beni department to declare a disaster on Monday, local news outlets reported, following the lead of other departments and hundreds of municipalities that have done the same in recent weeks. 

The congressional conflict between supporters of Evo Morales and Luis Arce has also slowed down the approval of multilateral loans needed for infrastructure projects, and it is expected to affect the passage of the 2024 budget bill as the two factions battle over leadership of MAS in the leadup to 2025 general election, where Morales has already stated that he intends to run for the presidency again.