Metropolitan Lima joins the Regional Compensation Fund: controversial decision divides opinions
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On November 7, the Commission on Decentralization, Regionalization, Local Governments and Modernization approved—with the consequent debate that such a proposal was going to generate—the opinion that modifies Law 31069, which strengthens income and the investments by regional governments through the Regional Compensation Fund (Foncor). In summary, the measure has integrated the Metropolitan Municipality of Lima into the Regional Compensation Fundso the money allocated to the capital’s administrative entity, for logical reasons, implies a reduction in the budget of the other regional governments. Of course, such a decision has become another page in the usual discussion between Lima and the rest of the departments, which is why various authorities in the interior of the country were against the decision of some congressmen.
In fact, some of the same members of the legislative working group recognized that the approval of the opinion would generate a confrontation between Lima and the regional governments. Thus, the congresswoman from Peru Libre, Margot Palacioswho represents the department of Ayacuchoindicated that this proposal violates decentralization and would generate unnecessary conflicts with regional governments.
“Many congressmen talk and talk about decentralizing, but now they seek to concentrate the resources of the regions in Metropolitan Lima. “I believe that we should not support this, because we should not create unnecessary conflicts with the regional governments,” said the legislator.
In the same way, the congressman from Somos Perú said, José Pazo Nunurawho represents the department of Piura. The legislator specified that such a measure would be detrimental to the northern region, since Piura would stop receiving more than 200 million soles. Likewise, his colleague from Peru Bicentennial and representative of the department of Cusco, the congressman Guido Bellidoindicated that the regional governments would oppose such a measure and that the best thing would be to create a special fund for Metropolitan Lima, so that it can receive an additional budget without this implying a reduction in the money from the Regional Compensation Fund.
Despite representing the department of Fistthe congressman from Podemos Peru, Carlos Zeballos, supported the proposal. According to the legislator, the various departments have considerable numbers of migrants living in Lima, especially in the peripheral areas, the poorest of the city, so said addition to the budget would represent help for migrants from these areas.
The congresswoman from Fuerza Popular and representative of Lime (despite being born in the department of Ica), Patricia Juarezargued that the budget that the capital municipality has is based, almost exclusively, on the resources collected from the vehicle assets tax, the property tax, the excise taxes, the administrative fines and the fines of the vehicle fleet.
“And despite all this, it barely receives a small portion of the Municipal Compensation Fund. There are no transfers of the customs fee. It does not have those benefits when it is a city that borders Callao,” he stated.
The congressman for Lime from Avanza País, Alejandro Caverowho also chairs said working group, mentioned that Metropolitan Lima’s budget is less than what it should be for the third of the population it houses.
“Metropolitan Lima does not have the adequate budget to close gaps in the city, especially in favor of the poorest. It is desired to correct the error of excluding the Metropolitan Municipality of Lima, which already received transfers from this fund between 2004 and 2020,” he concluded.
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