Cartagena's public finances, 2001 – 2018
The working paper series Documentos de Trabajo sobre Economía Regional y Urbana is published by Banco de la República (Central Bank of Colombia). The findings and opinions are those of the authors and do not reflect the views of Banco de la República or its Board of Directors.
The opinions expressed in this document are those of the authors and do not necessarily reflect the views of Banco de la República or its Board of Directors..
ABSTRACT
This paper analyzes the evolution of Cartagena's revenues, expenses and public debt in the period 2001-2018, considering the governmental crisis experienced due to several changes in local mayors during the last seven years. The results show, although the government crisis, fiscal revenues grow during the years analyzed. On the other hand, the growth rate of district public spending was lower, specifically the investment destination. When comparing the Cartagena´s per capita expenses to the aggregate of the 13 main cities, the departmental capitals of the Caribbean region, and Barranquilla, Cartagena exhibited a lag that resulted in part from the minor advance in the last seven years. The city´s disposable income continues to be lower than the estimated cost of social investment and infrastructure needs. The projections of tax revenues indicate that some improvement in the management of tax´s collection could help to close the gap between effective and potential revenues. By this way, it is possible to generate resources that could funded the required projects.
