July 15, 2020

Bolivia reallocates a percentage of its gas revenues to combat COVID-19

The transitory president of Bolivia, Jeanine Áñez, promulgated this Monday a law that temporarily reallocates 12% of the Direct Tax on Hydrocarbons, about 200 million dollars, so that municipalities, regions and universities use those resources for the health emergency by COVID -19.

Áñez announced through his Twitter account the enactment of this law that aims to “protect the health of Bolivians” and that these resources help the fight against COVID-19, in addition to benefiting productive activities and security food.

The “Law of temporary suspension and reallocation of resources of the fund to promote investment in hydrocarbon exploration and exploitation” indicates that 200 million dollars accumulated in that fund will be reallocated, which will go to the country’s governments, mayors, autonomous governments and universities .

The resources come from the Direct Tax on Hydrocarbons and for their distribution among these entities, a series of criteria will be taken into account, such as the risk level of each municipality in contagion of the coronavirus.

These resources must be specifically destined for COVID-19 prevention, care and containment activities, as well as in hospital equipment and the purchase of rapid tests.

They can also be used in 25% in programs for food security and food provision and another percentage in strengthening local production that has been affected by confinement, according to the standard.

While universities can make use of these resources to equip university hospitals, laboratories, and purchase supplies that help contain the pandemic in the country, the law states.

This temporary reallocation of resources will be until December of this year and the disbursement of the money can be made within a maximum period of fifteen days from the promulgation of the rule.

This norm was approved by the Legislative Assembly, with a majority of the Movement Towards Socialism (MAS), the party of former President Evo Morales, eleven days ago and which has the authority to oversee the execution of these resources.

Bolivia maintains flexible quarantine in some regions where you can go out to work and others continue to be rigid, depending on the progress in COVID-19 infections.

According to the latest report from the Ministry of Health, the country has 1,014 deaths and 31,524 confirmed cases.


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