Spending Category by v7166R

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									Sources of Funding for Different Categories of Spending by Municipal
Governments

Spending Category   Responsibilities of the               Sources of funding            Inflexibilities
                    municipality
Current Spending    - Fund the necessary apparatus for    - Own resources
                    the provision of the services and     - Credit
                    goods that the municipality is
                    responsible for.
Infrastructure      - Construction and maintenance of     - Transferences from the      Of resources
                    urban roads.                          Central Government (not       transferred form
                    - Construction and maintenance of     earmarked)                    central government,
                    infrastructure for culture and        - Own resources               in 2002 only 17%
                    sports, as well as market sites.      - Valorization fees           was not earmarked
                                                          - Toll fees
                                                          - Credit
Housing             - Housing projects (construction,     - Own resurces
                    purchase, improvement, and            - Credit
                    relocation of dwellings for low
                    income population)
Water, energy       - Support investment in public        - Tariffs related to          Of resources
                    infrastructure for the provision of   provision of these            transferred form
                    basic services                        services                      central government,
                    - Guarantee the provision of basic    - Own resources               in 2002 only 17%
                    water, energy and sanitary            - Credit                      was not earmarked
                    services.                             - Resources transferred
                                                          from Central Government
                                                          (not earmarked)
Education           - Construction and maintenance of     - Transferences from local    Of resources
                    infrastructure necessary for public   government (earmarked)        transferred form
                    education                             - Own resurces                central government a
                    - Provide public education            - Resources generated by      predetermined
                    services as required by the law       public education              fraction (58.5% in
                                                          institutions                  2002) is for education
                                                          - Credit                      (imposes restrictions
                                                                                        to cut education
                                                                                        spending)
Health              - Provide basic health services       - Transferences from local    Of resources
                    - Construction and maintenance of     government (earmarked)        transferred form
                    infrastructure necessary for basic    - Own resurces                central government a
                    health needs                          - Resources generated by      predetermined
                                                          public education              fraction (24.5% in
                                                          institutions                  2002) is for health
                                                          - Credit (particularly from   (imposes restrictions
                                                          FOSYGA)                       to cut health
                                                                                        spending)
Source: "Régimen de competencias sectoriales entre nación y entidades territoriales", and
"Régimen de la organización y funcionamiento de las entidades territoriales, National
Planning Department. Downloaded December 2004 from
http://www.dnp.gov.co/01_CONT/DES_TERR/Desc.htm#2.

								
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