Ciudad Capital 1
National Urban Policy
Paraguay is a unitary republic composed of three levels of government: national, departmental and municipal. Local governments, although subject to the plans of the central government, have administrative autonomy. It was during the 1990s, with the adjustments to the Constitution, that the municipalities began to democratically elect their authorities and move towards a gradual decentralization.
The participation of local governments in financial management and decisions is limited with a strong presence of the central government, however, the municipalities have a central administrative role. Their main revenues come from real estate taxes and road patents. In recent years, government transfers have become more important in municipal revenues, especially for those with lower incomes.
The departments, like the municipalities, have relative autonomy, concentrated in administrative matters, and do not exercise direct responsibility for the collection of their resources.
In recent years Paraguay has worked on land use planning and urban development at different administrative levels. The executive power institutions such as the Secretary of the Environment and the Technical Secretary of Planning are responsible for proposing national instruments. Much of the work of territorial planning in Paraguay is develop at the local level through the Urban and Territorial Planning Plans and the Municipal Plans for Sustainable Development.