Bolivia's Morales throws unity talks into disarray

By Terry Wade

LA PAZ, Jan 18 (Reuters) - Talks to end Bolivia's political crisis were in disarray on Friday after leftist President Evo Morales slashed provincial budgets, prompting the opposition to accuse him of breaking promises.

Officials suspended the negotiations to forge a national unity pact as political rivals expressed shock that Morales had imposed a plan to cut money that provinces get from natural gas exports by 30 percent and use the savings to fund social programs favored by his Socialist MAS party.

Morales' decree threatened to widen divisions in South America's poorest country, where politics have been especially turbulent since four of its nine provinces declared autonomy last month to protest the president's reforms and the draft of a new constitution approved by his allies.

Prior to Morales' edict, both sides had been negotiating for two weeks on how to incorporate some of the provinces' autonomy demands into the new constitution and divvy up lucrative revenue from gas exports.

The opposition said chances of a compromise were slim even if talks resumed next week.

"I think the Bolivian people are tired of this double-speak and the constant lies we are living in this country," Branko Marinkovic, a leader of the opposition movement in Santa Cruz province, told local media. "The government says it wants dialogue but it does exactly the opposite ... and cuts revenue."

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The government has said it will try to compensate the provinces for lost natural gas revenue.