The decentralization process in Nicaragua started in the late 80s of the previous century, kicking off with the legitimacy of the principle of municipal autonomy in the Constitution of 1987 and the autonomy of the regions of the Atlantic Coast. Only during the decade of the 90s did a real decentralization process arise through the constitutional reforms of 1995. Later years have seen a gradual expansion of competencies to municipalities, but without the appropriate allocation of resources for enforcement. The Budget Transfers to Municipalities was approved in 2004 in an attempt to reduce the imbalance between new competencies and the lack of sufficient financial resources. Currently, the process of decentralization is at a standstill. Programs have been set up by the central government, offering the delegation of competencies. In these programs, the sectorial competence prevails the municipal autonomy.