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December 3, 2024
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What’s coming for the SGP reform after its approval in Congress

How much would the SGR budget be if the project is approved in Congress?

The project that seeks to reform the General Participation System (SGP) received the endorsement of Congress in its eighth and last debate. The initiative approved in the plenary session of the House of Representatives will now go to conciliation as part of its process to become law.

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The reform aims to increase the resources that the Government delivers to the departments of the national territory. The idea is that the increase in transfers is carried out gradually, going from 23.8% to 39.5% in a period of 12 years.

The approved text also conditions its entry into force on the issuance of a competition lawwhich must make clear which functions of the central level pass to the regions. In this sense, the Ministry of the Interior has proposed that the construction of this standard be carried out through a technical table that includes all possible voices, with the support and accompaniment of the Organization for Economic Cooperation and Development (OECD) and the Development Bank of Latin America (CAF).

According to its authors, the implementation of this proposal is a transcendent step to advance the decentralization of Colombia, as established by the Political Constitution of 1991.

That premise has been supported by the governors who are part of the National Federation of Departments (FND), who have indicated that “the reorganization of the structure of the State and the strengthening of territorial capacities is a necessary, urgent and cannot be postponed transformation for the country.”

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GSP reform approved

César Melgarejo / EL TIEMPO

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Criticisms of the project

Since its conception, The reform of the GSP has not been exempt from criticism. Voices against have emphasized the implications that this could have on public finances, especially considering the country’s current fiscal situation.

Among those who have spoken out on the issue is representative Katherine Miranda. The congresswoman has described the approval of the project as “irresponsible.”

“The budget for next year will be 523 billion pesos and do you know how much it will be inflexible? 91%. And they tell us that they are going to generate a law of powers. Do you know what powers they “Are they going to end up transferring to the territories? That they end up paying the foreign debt, pensions, defense and security, that is what they are going to transfer, because otherwise 9 tax reforms would be needed.”Miranda highlighted.

(More news: ‘It’s the most irresponsible thing I’ve ever seen’: Katherine Miranda, on SGP reform)

Katherine Miranda

Katherine Miranda

@MirandaBogotá

(See: Quota for works due to taxes, in suspense due to cash squeezes)

What’s coming for the project?

After the proposal was approved in the plenary session of the House of Representatives, Conciliation is expected to take place in the next two weeks. with the articles approved in the Senate. To do this, both corporations will appoint a group of congressmen, who will be in charge of unifying the texts.

The final document must be ready before December 16, since it is a constitutional reform and cannot be discussed in extraordinary sessions. If the established dates are not met, the initiative would collapse due to lack of procedures.

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