colombia relaxes fiscal restrictions in regional funding legislation

Colombian lawmakers have made changes to a decentralization bill, which has been a subject of controversy.

The bill originally included a requirement for regional authorities to receive up to 39.5% of central government revenue by 2039. However, this requirement has now been removed to align with the government's mid-term fiscal framework. This decision has raised concerns among investors about the potential impact on fiscal discipline and economic stability.

The revised bill represents a significant shift in the government's approach to regional funding, aiming to improve local governance. However, it has also sparked a debate about its implications for national financial management.

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