Bogotá Medellín Sincelejo and Riohacha. About the Fiscal Performance Index.

The capital cities of departments have different characteristics in terms of fiscal results and territorial financial management.

Indeed, according to the recently published official report with results for the year 2.022, Bogotá presents the following results in its fiscal performance. It is less dependent than other capitals on national transfers that are granted in accordance with the General Budget of the Nation. This gives a measured score of 1 to 100 out of 80 on that score. The same happens with the debt requirements since they are lower than those of other capitals and give the city a rating of 85 out of 100. Regarding the capacity to collect taxes, the rating is 100, in the execution of the investment 80 and in the primary balance of income and expenses the score is 60.

With the previous results, Bogotá is rated with a Fiscal Performance Index of 79.4, which is higher than the other department capitals.

For its part, Medellín does not have too much dependence on national transfers, which gives it a score of 70.6 out of 100, in debt requirements it receives a rating of 62. Regarding the tax collection capacity, the rating is 100, in the execution of the investment 100 and in the primary balance of income and expenses 60. According to the previous results, Medellín is rated with a Fiscal Performance Index of 71.18.

In a similar way, other cities such as Cali and Barranquilla ultimately obtain Fiscal Performance Indices of 66 and 75.7. Where Cali is the one with the lowest Index of the previous ones since the components of the rating are dependent on the nation's transfers 57, indebtedness 67, tax collection 100, investment execution 80 and primary balance 60. Note that the difference Greater with the other cities is the dependence on the nation's transfers, which gives it a lower score.

The department capitals that register the lowest Fiscal Performance Indices are Quibdó 52.4, Santa Marta 52.8, Riohacha 50.3, Neiva 51.7, Montería 53.6 and Sincelejo 45.3. There, Sincelejo's rating is influenced by the nation's high dependence on transfers, which gives it a low score of 23.5. The same occurs with the rating of Riohacha whose high dependence on the nation's transfers gives it a very low score of 15.8; also, Quibdó where those transfers assign it a low score of 16.8.

The cities with intermediate values in the Fiscal Performance Index are Tunja 58.3, Yopal 58, Popayán 55.3, Ibague 56.1 and Armenia 59.5.

Some observations on the behavior described above are as follows. Large cities in population, production (GDP) and with less informality such as Bogotá, Medellín, Cali and Barranquilla also have the highest Fiscal Performance Indices. They are cities that in the calculation of the Index depend less on the nation's transfers from the National Budget.

Other cities such as Sincelejo, Quibdó, Riohacha and Santa Marta show the lowest Fiscal Performance Indices and with a high dependence on transfers from the nation, but they are also cities with high informality and monetary poverty.

For national public policy, the reduction of regional differences is required by articulating sources of investment and job creation with the private sector in such a way that the fiscal performance compared between cities is also reduced. For their part, local governments support the economic development and well being of the population with the administration of public finances.