The Congress of the Republic gave the green light to the reform of the General Participation System (SGP). The initiative, which will now go to conciliation, aims to increase the resources that the Government gives to the regions.
(Read more: What fiscal implications could the approval of the SGP reform have?)
The idea of the project is that the increase in transfers to the departments of the national territory is carried out gradually, going from 23.8% to 39.5% in a period of 12 years. This is with a view to advancing the decentralization of the country, as established by the Political Constitution of 1991.
The approved text also conditions its entry into force to the issuance of a powers lawwhich must make clear which functions of the central level pass to the regions. To this end, it has been proposed to create a technical table that includes the greatest possible participation.
The reform of the GSP has not been without criticism, especially considering the warnings that have been issued regarding the impact that its implementation would have on public finances. Among the opposing voices that have spoken out on the issue is that of representative Katherine Miranda.
Among the objections that the congresswoman has made, it stands out that the bill could not only “break” the Fiscal Framework as a result of its incompatibility, but also that some municipalities may not be able to assume the established percentage increase. This considering the categorization and level of responsibility.
But what exactly is Miranda referring to?
(Read more: What’s coming for the SGP reform after its approval in Congress)
Katherine Miranda
Chamber Press
(See: They file a negative report on the Petro government financing law)
Territorial categorization
According to information from the General Accounting Office of the Nation, each year, by decree, governors and mayors must determine the category in which a department, district or municipality is classified. This is in compliance with the provisions of articles 302 and 320 of the Political Constitution of 1991.
The objective of this process is to classify territorial entities based on their income and population, taking into account their administrative and fiscal management capacity. In other words, and as indicated by the Magna Carta, parameters such as the number of inhabitants, their fiscal resources, their economic importance and their geographical location are taken into account.
The categorization is also done taking as reference the certificates issued by the Comptroller General of the Republic and the National Administrative Department of Statistics (Dane) regarding the aforementioned criteria.
In the case of the departments, these are divided into five categories; while for the districts and municipalities there are seven and three groups (large, intermediate and basic municipalities).
Money.
iStock
(See: Attorney General’s Office denounces that its alerts regarding the SGP reform were ignored)
Classification of municipalities
In accordance with the provisions of Law 136 of 1994, the categories are:
1. FIRST GROUP (LARGE MUNICIPALITIES):
– Special category: population: greater than or equal to 500,001 inhabitants / annual free-use current income: 400,000 current legal monthly minimum wages.
– First category: population: between 100,001 and 500,000 inhabitants / annual free-use current income: greater than 100,000 and up to 400,000 current legal monthly minimum wages.
2. SECOND GROUP (INTERMEDIATE MUNICIPALITIES):
– Second category: population: between 50,001 and 100,000 inhabitants / annual free-use current income: greater than 50,000 and up to 100,000 current legal monthly minimum wages.
– Third category: population: between 30,001 and 50,000 inhabitants/ annual free-flowing current income: greater than 30,000 and up to 50,000 monthly legal minimum wages.
– Fourth category: population: between 20,001 and 30,000 inhabitants / annual free-flowing current income: greater than 25,000 and up to 30,000 monthly legal minimum wages.
3. THIRD GROUP (BASIC MUNICIPALITIES):
– Fifth category: population: between 10,001 and 20,000 inhabitants / annual free-flowing current income: greater than 15,000 and up to 25,000 monthly legal minimum wages.
– Sixth category: population: equal to or less than 10,000 inhabitants / annual free-flowing current income: no more than 15,000 monthly legal minimum wages.
(See: SGR Budget receives green light in second debate: this is how its distribution is proposed)
PORTFOLIO
