Blog BanRep: Debt and Subnational Fiscal Rules

This new entry refers to the implementation and impact of the fiscal rules for subnational governments, which preceded the National Government's fiscal rule by over a decade.
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Following the enactment of the 1991 Constitution, which increased the fiscal autonomy of subnational governments, there was a growing deterioration of territorial finances, which, in turn, threatened to jeopardize the fiscal position of the Central Government. In response, fiscal rules for subnational governments were introduced in 1997. A recent paper in the journal Ensayos Sobre Política Económica (ESPE in Spanish), written by a group of researchers from Banco de la República (the Central Bank of Colombia), studies the implementation and impact of these measures that preceded the national government's fiscal rule by over a decade.

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