The municipal government of Asunción, under Mayor Luis Bello (ANR-HC), allocated nine out of every ten guaranis in its budget to payroll and administrative costs between January and April 2026, leaving less than 8% for urban infrastructure investments.
According to the financial reporting for the period, of the G. 328.377 million total executed, more than G. 292.784 million were absorbed by current expenditures, equivalent to 90% of the budget. Personal services alone — salaries, bonuses, and other employee payments — consumed G. 230.172 million, or 70% of the total.
The largest payroll items were wages, at over G. 100.157 million, permanent administrative staff salaries, at G. 66.043 million, and bonuses and gratuities, which totaled G. 29.239 million. That amount in gratuities alone exceeds the G. 27.754 million spent on physical investment in the same four-month period.
The concentration of resources in the administrative structure stands in contrast with what the municipality itself describes as visible neglect in neighborhoods such as Santo Domingo, Manorá, and San Pablo, where residents report chronic delays in infrastructure works promised by the previous administration of former Mayor Óscar "Nenecho" Rodríguez (ANR-HC), including the 2022 G8 bonds. Potholes, a lack of storm drains, and garbage collection problems are repeated across multiple points in the city.
The current distribution also raises questions about compliance with Law 5.513/15, which limits current expenditures, such as salaries, to 40% of Real Estate Tax revenue and reserves the remaining 60% for capital investments. The municipality did not say whether that threshold has already been exceeded.
In the electoral debate ahead of October's municipal elections, the opposition has criticized the possible continuation of this model. Councilman Humberto Blasco (PLRA) says a victory for the ruling-party candidate Camilo Pérez (ANR-HC) would represent the "third chapter" of the same management approach that, according to him, prioritizes rigid spending over urban development.
Pérez publicly rejected the recommendation from intervenor Carlos Pereira to dismiss about 3 of the municipality's more than 9,000 employees. The candidate says he proposes an internal restructuring but would only admit potential layoffs in proven cases of "planilleros" — political appointees on the payroll.