The World Today
A key agreement was signed between the government and the 19 mayors, focusing on decentralizing resources, improving rural roads, local public works, and public services starting in 2026.
The agreement seeks to bring concrete works and essential services to the entire territory.
After several twists and turns, the national government and the country's 19 mayors signed an agreement that could change the way things are done in the interior of the country. This pact seeks to decentralize resources, give mayors greater power, and, above all, narrow the gap that still exists between Montevideo and the rest of the country.
The most significant aspect of the agreement is that it establishes 3.33% of the national budget to be managed directly by departmental governments. This will fund works, services, and projects designed specifically for each territory, with its own priorities. This money goes directly to where it's needed, without any hassle.
Starting in 2026, the municipalities of the interior will have a greater influence on the Interior Development Fund (FDI). The new scheme establishes that 45% of this fund will be managed directly by them, while the other 55% will remain in the hands of the Executive Branch. In terms of numbers, we're talking more than $40 million extra to distribute to local projects over the next five years. No small feat.
Strategic Investment Fund of $80 million was also confirmed , earmarked for projects between 2027 and 2029. The idea is for this money to be used for infrastructure projects that truly make a difference in people's lives. It could be a bridge, a school, or a health center, depending on the needs of each location.
One of the issues of greatest concern, especially in remote areas, is the condition of the roads. Therefore, the agreement will allocate more than 1.7 billion pesos to improve rural roads. In many towns, roads are the only connection to everything: to school, to the hospital, to the fair. Keeping them in good condition isn't a luxury; it's a necessity.
Public lighting was also discussed. A subsidy of 400 million pesos was agreed upon, which will be adjusted according to the rates set by UTE. This will help municipalities, especially the smaller ones, which often have to choose between turning on the town's lights or paying another urgent bill.
Another point of the agreement relates to rewarding good management. The criteria for the Municipal Management Incentive Fund (FIGM), which recognizes when things are done well, were updated. The amount of money to be distributed was not specified, but the goal is to use it as an incentive for better management.
Nicolás Olivera, who chairs the Congress of Mayors, was full of praise. He said this agreement addresses long-standing demands and appreciated the fact that all the mayors—from all parties—pulled together. “It's unusual to see this level of political agreement,” commented one of those present.
The signed document reflects a clear intention: to ensure that resources arrive more quickly, without so much paperwork, and with a territorial logic. That is, each department can decide what it needs, without having to wait for Montevideo to tell them where to start.
Of course, everything sounds good on paper. Now comes the hard part: making sure it's implemented, ensuring the money arrives, and that it's used appropriately. But at least for now, there's a firm agreement that could mark a turning point in the way the country is governed from the bottom up.
