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Ítem Finanzas públicas de Cali: evolución, caracterización y diagnóstico(Universidad Icesi, 2012-10-01) Collazos, Jaime AndrésThis paper examined the main factors affecting the behavior of public finances in the city of Cali, Colombia. This analysis used the trend and characterization of ten financial indicators, and eight fiscal capacity indicators taken from the international and national evidence from 1998 to 2009. The results show that the most important variables that affect the income and the expenses of a city are: limited contribution of public corporations, low availability of own resources for investments, high dependency on national transfers, low tax enforcement, high operating costs, the excessive debt to finance current spending rather than in sustainable productive projects.