Colombia's Decentralization Plan Could Lead to Unsustainable Debt Increase

Reported about 1 month ago

Colombia's congress is debating a proposal to significantly increase government transfers to regions, potentially raising national debt by 15% of GDP over the next decade. The bill aims to decentralize the economy but has raised concerns from economists and policymakers, warning it could pose risks to macroeconomic stability. If passed, it may be challenged in the constitutional court due to its fiscal unsustainability.

Source: YAHOO

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