This paper analyzes the fiscal and sectorial effects of the subnational transfers bill, which is currently in Congress in its second, and final, legislative period.The bill adjusts the resources that the national government will have to transfer to the subnational governments and discusses, marginally, their regional and sectorial distribution.The expenditure domains between the national and subnational governments are not considered in the bill.Thus, the country's fiscal decentralization process will not be substantially modified.The first conclusion is that the Sistema General de Participaciones, established in 2001, turned more flexible the budget of the government and allowed it to make substantial savings.However, they were not fully transferred into its fiscal figures.According to what has been approved in the first legislative period, the national government can keep stable its fiscal situation.The recommendation would be to use potential savings to reduce the government's debt.If the bill is not approved, the sustainability of the government finances will be at risk.The second conclusion is that subnational transfers have fostered important achievements in sectorial coverage, especially in education and health, though full sectorial coverage is not yet complete.Meanwhile, only few advances have been made in quality and efficiency.The sectorial projections depend, to a great extent, on the public funds.According to what has been approved up to the present, full coverage of primary school and public health would be reached by 2010.