Finance Ministry transfers more than G. 2.33 trillion to local governments; six municipalities are listed without funds

The Ministry of Economy and Finance transferred more than G. 2.33 trillion to Paraguayan departments and municipalities during the first eight months of 2026. A spreadsheet lists no transfers for Asunción and five other municipalities, but does not itself detail the individual reason in each case.

Finance Ministry transfers more than G. 2.33 trillion to local governments; six municipalities are listed without funds

The Ministry of Economy and Finance (MEF) transferred more than G. 2.33 trillion to Paraguayan departments and municipalities during the first eight months of 2026, through the end of August. The amount appears in a report by the General Directorate of Departments and Municipalities (DGDM), which is part of the Vice Ministry of Financial Administration.

Of the total, the 17 departments received G. 1,599,295 million, while the municipalities received G. 739,961 million. The funds come from royalties, the portion of the Value Added Tax (VAT) derived from Treasury resources, the gambling canon and other state compensations.

The spreadsheet also lists six municipalities with no transfers during the period: Asunción, Paso Barreto, Juan de Mena, Valenzuela, Villa Hayes and Fuerte Olimpo. The spreadsheet records an absence of transfers, but does not itself detail the individual reason in each case.

To receive the funds, municipal and departmental governments must submit financial accounts and four-month reports to the MEF and the Comptroller General's Office. They must also be up to date with transferring their employees' contributions to the Municipal Employees' Retirement and Pension Fund. Noncompliance may lead the National Treasury to suspend transfers until the situation is regularized.

The mayors of the administrations without funding include Luis Bello of Asunción; Milciades Arce of Paso Barreto; Fabio Díaz of Juan de Mena; Mirtha Fernández of Valenzuela; Sol Núñez of Villa Hayes; and Moisés Recalde of Fuerte Olimpo. The political affiliations and other classifications attributed to some of them do not alter the administrative criterion reported for the suspension: compliance with legal requirements.

The DGDM maintains a public MEF consultation tool. Using the Single Taxpayer Registry (RUC) and the reference year, users can check transfer requests, amounts, funding sources, the status of each request and pending requirements for each municipality or department.

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Updated: Sep 8, 2026, 1:00 AM