Can the Oil Sector Solve the Problem of the Fiscal Deficit in Bolivia?

Abstract

The answer is no, at least in the short term. I wanted to begin with the answer in order to motivate the reading of a problematic topic, namely the relationship between the extraction of petroleum and natural gas and its fiscal contribution in the form of royalties and taxes. In what follows, I want to present some points on a subject that, although obvious from the numbers, do not seem to be common knowledge.