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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