Evolution of Public Finances in Cartagena, Colombia, 2001 – 2018: Is It Necessary to Increase the Collection Efficiency?

Abstract

This paper presents a descriptive analysis of the evolution of Cartagena's income, expenses and public debt between 2001 and 2018 in light of the government crisis experienced in the last seven years of that period. The results show that tax revenues maintained their growth rate despite the crisis. In contrast, the rate at which public spending grew was lower, specifically the one destined for investment. The results of an additional income projection exercise show that to generate the resources that could help finance the projects that the city requires, a higher effective collection is needed compared to the potential one.