Keep Us Strong WikiLeaks logo

Currently released so far... 97115 / 251,287

Articles

Browse latest releases

Browse by creation date

Browse by origin

A B C D F G H I J K L M N O P Q R S T U V W Y Z

Browse by tag

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
ETRD EAGR ETTC EAID ECON EFIN ECIN EINV ELAB EAIR ENRG EPET EWWT ECPS EIND EMIN ELTN EC ETMIN EUC EZ ET ELECTIONS ENVR EU EUN EG EINT ER ECONOMICS ES EMS ENIV EEB EN ECE ECOSOC EK ENVIRONMENT EFIS EI EWT ENGRD ECPSN EXIM EIAD ERIN ECPC EDEV ENGY ECTRD EPA ESTH ECCT EINVECON ENGR ERTD EUR EAP EWWC ELTD EL EXIMOPIC EXTERNAL ETRDEC ESCAP ECO EGAD ELNT ECONOMIC ENV ETRN EIAR EUMEM ENRGPARMOTRASENVKGHGPGOVECONTSPLEAID EREL ECOM ECONETRDEAGRJA ETCC ETRG ECONOMY EMED ETR ENERG EITC EFINOECD EURM EENG ERA EXPORT ENRD ECONEINVETRDEFINELABETRDKTDBPGOVOPIC EGEN EBRD EVIN ETRAD ECOWAS EFTA ECONETRDBESPAR EGOVSY EPIN EID ECONENRG EDRC ESENV ETT EB ENER ELTNSNAR ECHEVARRIA ETRC EPIT EDUC ESA EFI ENRGY ESCI EE EAIDXMXAXBXFFR EETC ECIP EIAID EIVN EBEXP ESTN EING EGOV ETRA EPETEIND ELAN ETRDGK EAIDRW ETRDEINVECINPGOVCS EPEC ENVI ELN EAG EPCS EPRT EPTED ETRB EUM EAIDS EFIC EFINECONEAIDUNGAGM EAIDAR ESF EIDN ELAM EDU EV EAIDAF ECN EDA EXBS EINTECPS ENRGTRGYETRDBEXPBTIOSZ EPREL EAC EINVEFIN ETA EAGER EINDIR ECA ECLAC ELAP EITI EUCOM ECONEFINETRDPGOVEAGRPTERKTFNKCRMEAID EARG ELDIN EINVKSCA ENNP EFINECONCS EFINTS ECCP ETC EAIRASECCASCID EINN ETRP EAIDNI EFQ ECOQKPKO EGPHUM EBUD ECONEINVEFINPGOVIZ ENERGY ELB EINDETRD EMI ECONEFIN EIB EURN ETRDEINVTINTCS EIN EFIM ETIO ELAINE EMN EATO EWTR EIPR EINVETC ETTD ETDR EIQ ECONCS EPPD ENRGIZ EISL ESPINOSA ELEC EAIG ESLCO EUREM ENTG ERD EINVECONSENVCSJA EEPET EUNCH ECINECONCS ETRO ETRDECONWTOCS ECUN EFND EPECO EAIRECONRP ERGR ETRDPGOV ECPN ENRGMO EPWR EET EAIS EAGRE EDUARDO EAGRRP EAIDPHUMPRELUG EICN ECONQH EVN EGHG ELBR EINF EAIDHO EENV ETEX ERNG ED
KMDR KPAO KPKO KJUS KCRM KGHG KFRD KWMN KDEM KTFN KHIV KGIC KIDE KSCA KNNP KHUM KIPR KSUM KISL KIRF KCOR KRCM KPAL KWBG KN KS KOMC KSEP KFLU KPWR KTIA KSEO KMPI KHLS KICC KSTH KMCA KVPR KPRM KE KU KZ KFLO KSAF KTIP KTEX KBCT KOCI KOLY KOR KAWC KACT KUNR KTDB KSTC KLIG KSKN KNN KCFE KCIP KGHA KHDP KPOW KUNC KDRL KV KPREL KCRS KPOL KRVC KRIM KGIT KWIR KT KIRC KOMO KRFD KUWAIT KG KFIN KSCI KTFIN KFTN KGOV KPRV KSAC KGIV KCRIM KPIR KSOC KBIO KW KGLB KMWN KPO KFSC KSEAO KSTCPL KSI KPRP KREC KFPC KUNH KCSA KMRS KNDP KR KICCPUR KPPAO KCSY KTBT KCIS KNEP KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG KNNB KGCC KINR KPOP KMFO KENV KNAR KVIR KDRG KDMR KFCE KNAO KDEN KGCN KICA KIMMITT KMCC KLFU KMSG KSEC KUM KCUL KMNP KSMT KCOM KOMCSG KSPR KPMI KRAD KIND KCRP KAUST KWAWC KTER KCHG KRDP KPAS KITA KTSC KPAOPREL KWGB KIRP KJUST KMIG KLAB KTFR KSEI KSTT KAPO KSTS KLSO KWNN KPOA KHSA KNPP KPAONZ KBTS KWWW KY KJRE KPAOKMDRKE KCRCM KSCS KWMNCI KESO KWUN KPLS KIIP KEDEM KPAOY KRIF KGICKS KREF KTRD KFRDSOCIRO KTAO KJU KWMNPHUMPRELKPAOZW KEN KO KNEI KEMR KKIV KEAI KWAC KRCIM KWCI KFIU KWIC KCORR KOMS KNNO KPAI KBWG KTTB KTBD KTIALG KILS KFEM KTDM KESS KNUC KPA KOMCCO KCEM KRCS KWBGSY KNPPIS KNNPMNUC KWN KERG KLTN KALM KCCP KSUMPHUM KREL KGH KLIP KTLA KAWK KWMM KVRP KVRC KAID KSLG KDEMK KX KIF KNPR KCFC KFTFN KTFM KPDD KCERS KMOC KDEMAF KMEPI KEMS KDRM KEPREL KBTR KEDU KNP KIRL KNNR KMPT KISLPINR KTPN KA KJUSTH KPIN KDEV KTDD KAKA KFRP KWNM KTSD KINL KJUSKUNR KWWMN KECF KWBC KPRO KVBL KOM KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG KEDM KFLD KLPM KRGY KNNF KICR KIFR KM KWMNCS KAWS KLAP KPAK KDDG KCGC KID KNSD KMPF KPFO KDP KCMR KRMS KNPT KNNNP KTIAPARM KDTB KNUP KPGOV KNAP KNNC KUK KSRE KREISLER KIVP KQ KTIAEUN KPALAOIS KRM KISLAO KWM KFLOA
PHUM PINR PTER PGOV PREL PREF PL PM PHSA PE PARM PINS PK PUNE PO PALESTINIAN PU PBTS PROP PTBS POL POLI PA PGOVZI POLMIL POLITICAL PARTIES POLM PD POLITICS POLICY PAS PMIL PINT PNAT PV PKO PPOL PERSONS PING PBIO PH PETR PARMS PRES PCON PETERS PRELBR PT PLAB PP PAK PDEM PKPA PSOCI PF PLO PTERM PJUS PSOE PELOSI PROPERTY PGOVPREL PARP PRL PNIR PHUMKPAL PG PREZ PGIC PBOV PAO PKK PROV PHSAK PHUMPREL PROTECTION PGOVBL PSI PRELPK PGOVENRG PUM PRELKPKO PATTY PSOC PRIVATIZATION PRELSP PGOVEAIDUKNOSWGMHUCANLLHFRSPITNZ PMIG PREC PAIGH PROG PSHA PARK PETER POG PHUS PPREL PS PTERPREL PRELPGOV POV PKPO PGOVECON POUS PGOVPRELPHUMPREFSMIGELABEAIDKCRMKWMN PWBG PMAR PREM PAR PNR PRELPGOVEAIDECONEINVBEXPSCULOIIPBTIO PARMIR PGOVGM PHUH PARTM PN PRE PTE PY POLUN PPEL PDOV PGOVSOCI PIRF PGOVPM PBST PRELEVU PGOR PBTSRU PRM PRELKPAOIZ PGVO PERL PGOC PAGR PMIN PHUMR PVIP PPD PGV PRAM PINL PKPAL PTERE PGOF PINO PHAS PODC PRHUM PHUMA PREO PPA PEPFAR PGO PRGOV PAC PRESL PORG PKFK PEPR PRELP PREFA PNG PGOVPHUMKPAO PRELECON PINOCHET PFOR PGOVLO PHUMBA PRELC PREK PHUME PHJM POLINT PGOVPZ PGOVKCRM PGOVE PHALANAGE PARTY PECON PEACE PROCESS PLN PRELSW PAHO PEDRO PRELA PASS PPAO PGPV PNUM PCUL PGGV PSA PGOVSMIGKCRMKWMNPHUMCVISKFRDCA PGIV PRFE POGOV PEL PBT PAMQ PINF PSEPC POSTS PHUMPGOV PVOV PHSAPREL PROLIFERATION PENA PRELTBIOBA PIN PRELL PGOVPTER PHAM PHYTRP PTEL PTERPGOV PHARM PROTESTS PRELAF PKBL PRELKPAO PKNP PARMP PHUML PFOV PERM PUOS PRELGOV PHUMPTER PARAGRAPH PERURENA PBTSEWWT PCI PETROL PINSO PINSCE PQL PEREZ PBS

Browse by classification

Community resources

courage is contagious

Viewing cable 06BOGOTA1383, COLOMBIAN CONSTITUTIONAL MANDATE REDUCES SPENDING

If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs

Understanding cables
Every cable message consists of three parts:
  • The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
  • The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
  • The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.
To understand the justification used for the classification of each cable, please use this WikiSource article as reference.

Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #06BOGOTA1383.
Reference ID Created Released Classification Origin
06BOGOTA1383 2006-02-14 16:08 2011-08-25 00:00 UNCLASSIFIED Embassy Bogota
VZCZCXYZ0012
RR RUEHWEB

DE RUEHBO #1383/01 0451608
ZNR UUUUU ZZH
R 141608Z FEB 06
FM AMEMBASSY BOGOTA
TO SECSTATE WASHDC 2261
UNCLAS BOGOTA 001383 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ECON EFIN CO
SUBJECT: COLOMBIAN CONSTITUTIONAL MANDATE REDUCES SPENDING 
FLEXIBILITY 
 
REF: BOGOTA 012032 
 
1. SUMMARY: The Colombian constitution requires that the 
central government transfer funds to departments, which are 
equivalent to states in the U.S.  The transfers are the 
primary source of revenue for the departments, and fund key 
programs such as education and healthcare.  In some 
departments, especially those with a large narco-terrorist 
presence, the combination of government transfers and 
non-renewable resource royalties represents almost 100 
percent of revenue.  In 2006, the GOC is budgeted to spend 
more than USD 8.2 billion on transfers (about 15 percent of 
the budget) and a new constitutionally mandated scheme set to 
come into effect in 2009 will dramatically increase those 
outlays.  The GOC lists reform of the transfer system as one 
of its key fiscal priorities, and aims to increase 
accountability of the departments once the money is received. 
 END SUMMARY. 
 
------------------ 
WHAT ARE TRANSFERS 
------------------ 
 
2. The source of government transfers to the regions is both 
national taxes and internal financing.  Transfers are 
destined for social spending purposes such as education, 
healthcare and potable water.  The 2006 transfer calculation 
uses the total 2005 transfer as the base and is increased by 
inflation plus 2.5 percent (4.86   2.5).  In 2009, the 
transfer calculation will change, using the previous year as 
the base plus an average of the last four years, increases 
in tax collection.  The average annual increase in revenue 
generation between 2002 and 2005 was more than 14 percent. 
With this trend expected to continue, the central government 
will be obligated under this new scheme to increase transfers 
at an annual rate of 10 percent or more. 
 
TAX CHART (in billions of USD) 
YEAR  COLLECTED    GROWTH 
2002  12.24 
2003  14.348         17   percent 
2004  16.828         17   percent 
2005  19.333         15   percent 
2006  21.333         10.3 percent (projected) 
 
------------------------ 
HOW MUCH IS TRANSFERRED? 
------------------------ 
 
                     2002  2003   2004  2005  2006 
TOTAL Transfer        4.9   5.7    6.2   6.7   7.2 
Percent of Budget    17.4  19.6   18.4  16.6  15.5 
Percent of GDP        5.0   5.6    5.4   5.6   5.7 
(in billions USD) 
 
Royalties            813m   1.0   753m   917m  1.2 
TOTAL Transferred to regional governments 
                     5.7b  6.7b   6.9b  7.6b  8.2b 
(USD exchange rate 2250 = 1 USD and in billions USD) 
 
3. Congress approved a change to the transfer regime in 2003, 
which complemented the Central Bank's inflation targeting 
strategy.  Changing the formula to use a steadily decreasing 
inflation rate as the multiplier led to a steadily falling 
transfer allotment growth rate during the last three years. 
While the GOC is concerned with this large budget burden, the 
departments depend almost exclusively on this source of 
revenue. 
 
4. The departments, municipalities and districts are required 
to spend this money according to the following functional 
category distribution: 
 
                  2002  2003   2004  2005  2006 
Education         60    56     46    47    46.5 
Health            23    23.5   23    22    24.5 
Housing            1     7      6     6     4 
Welfare           15     8     14.5  15    14 
Culture            0     1      1     0.5   1 
Environment        0     0      0.5   0.5   1 
Non-Social         0     4      9     9     9 
spending 
(Percent per category) 
 
-------------------------- 
THE PROBLEM WITH TRANSFERS 
-------------------------- 
 
5. While the departments are pleased with transfers and look 
forward to receiving more money in the future, the central 
government considers transfers as problematic because they 
severely limit spending flexibility.  Nearly two-thirds of 
the GOC,s budget is assigned to constitutionally mandated 
 
categories (debt service, pensions and territorial 
transfers). Transfers alone account for 15 percent of the 
2006 national budget, although this is down from 16.6 percent 
in 2005.  Luz Stella Carrillo, from the Territorial Transfers 
Office of the Department of Planning, said that the transfer 
regime needs serious changes because the current system is 
not fiscally sustainable for the medium-term or long-term. 
 
6. A second problem with transfers is that departments are 
not held accountable for how the funds are used.  The GOC's 
VISION 2019 plan specifically addresses this issue by 
proposing changes to the entire transfer regime.  To date, 
the GOC has no mechanism or legal mandate to closely monitor 
the use of transfers.  Non-renewable resource royalties, 
which are also used for education, potable water, roadways 
and healthcare, are heavily monitored by two separate 
government agencies.  Monitoring was implemented only in the 
last two years because evidence was found that royalty funds 
were being diverted to narco-terrorist groups.  Only the 
Magdalena, Guajira, and Cordoba departments (and their 
recipient municipalities) met all reporting, spending, 
contracting, and results requirements in 2005. 
 
7. Lastly, the transfer growth rate is expected to skyrocket 
when the formula changes to use a percent of growth of 
revenues vs. the current calculation (previous year,s 
inflation plus 2.5 percent).  Meanwhile, royalties from oil 
and mineral production are projected to decline as Colombia's 
oil exports drop. 
 
------- 
COMMENT 
------- 
 
8. Nearly two-thirds of the GOC,s budget is assigned to 
constitutionally mandated categories: debt service, pensions 
and territorial transfers, limiting fiscal flexibility. 
Constitutionally mandated increases in transfers, post the 
2009 transfer regime change, along with projected decreases 
in oil export royalties, will make changes to the regime 
politically unfeasible.  The real culprit; however, are the 
lack of adequate departmental taxes and the absence of 
incentives for the departments to self-finance.  Outside of 
urban areas, land and real property taxes are virtually 
nonexistant.  The GOC has not clarified what strategy it will 
use to move the transfer reforms through Congress, but has 
affirmed that it will address this issue early in the next 
term.  Current priorities, i.e., elections, the free trade 
agreement, and tax reform are consuming much of the available 
political energy.  The GOC, possibly a second Uribe 
administration, should address this issue early in the term 
before an important source of regional government financing 
(i.e. royalties) literally &dries up8 and dependence on the 
transfer regime further solidifies. 
DRUCKER