The Ministry of Finance and municipal representatives have agreed on a 7.8% adjustment in transfers from the General Participation System (SGP) for the first twelfth of 2026, following a reduction in the last period of 2025. The meetings also reviewed technical models for fund distribution throughout the rest of the year.
In a series of five meetings held during January, the Ministry of Finance, the National Planning Department, and representatives from the Colombian Federation of Municipalities, Asocapitales, and Asointermedias agreed on adjustments to transfers from the General Participation System. This agreement includes an additional 7.8% increase for the first period of 2026, addressing the reduction seen in the last period of 2025 due to the government's application of the SGP.
The lower allocation of resources has led to temporary cash flow difficulties in the general component. Additionally, the meetings allowed for a review of technical models for resource distribution throughout the rest of 2026.
Regarding the National Pension Fund for Territorial Entities (Fonpet), the Ministry of Finance announced that starting next Monday, coverage letters for liabilities will be issued. This will enable municipalities to proceed with the 2025 'desahorro'.
"The Government's position has been clear and consistent: to dialogue, build, and find solutions with territorial entities, within the current constitutional and legal framework (...) we reiterate our willingness to continue with ongoing dialogue that allows us to keep strengthening and promoting territorial development with respect to the different challenges faced by local governments in Colombia," the ministry concluded.
This dialogue aims to bolster territorial development and address the challenges of local governments in Colombia.
