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Colombia Congress Approves 2027 Budget Amid Deepening Fiscal Strains
Colombia’s Congress approved a plan for how the government will spend money in 2027.
The plan is worth about 634.9 trillion Colombian pesos.
The government expects to spend more money than it collects in taxes and other income.
This shortfall is called a fiscal deficit.
The deficit could reach 9.4% of the country’s economy, which would be a record.
Colombia plans to borrow more money to help pay for the shortfall.
The government also wants Congress to consider a “Rescue Law” to cut spending.
Finance Minister Miguel Gomez said the budget was affordable given the country’s economic condition.
President Abelardo De La Espriella blamed the previous government, while a fiscal oversight committee warned that the public-finance situation could become more serious.
Congress approved Colombia’s 2027 spending budget totaling 634.9 trillion pesos, or $206.6 billion.
The budget projects a record fiscal deficit equal to 9.4% of GDP next year.
The government expects to finance much of the deficit through increased public debt.
President Abelardo De La Espriella’s government plans to propose a “Rescue Law” to reduce spending and lower the deficit to 7.2% of GDP.
De La Espriella blamed predecessor Gustavo Petro’s government for the worsening finances, citing corruption and misuse of resources without providing evidence.
- Who
- Colombia’s Congress approved the budget proposed by President Abelardo De La Espriella’s government, with Finance Minister Miguel Gomez presenting it.
- What
- Lawmakers approved a 2027 spending budget of 634.9 trillion pesos and projected a fiscal deficit of 9.4% of GDP.
- Where
- Colombia, including Congress in Bogota.
- When
- Monday, September 14; the budget covers 2027.
- Why
- The government said the budget reflected what the economy could afford, while additional funding needs included those linked to the August earthquake.
Government’s Justification
Fiscal Concerns and Opposition
Affordability of the budget
Government’s Justification
Finance Minister Miguel Gomez said the budget was not the government’s preferred starting point but was what Colombia could afford given the economy’s condition.
Fiscal Concerns and Opposition
Juan Carlos Ramirez of the Independent Committee for Fiscal Rule Management warned that public finances would face a more critical situation if the proposed budget were approved.
Responsibility for the fiscal deterioration
Government’s Justification
President Abelardo De La Espriella attributed the worsening fiscal situation to corruption and misuse of resources under predecessor Gustavo Petro’s government.
Fiscal Concerns and Opposition
The report states that De La Espriella provided no evidence for those claims, while the projected deficit and higher borrowing point to continuing fiscal pressures.
Key facts
- 2027 budget
- 634.9 trillion Colombian pesos, or $206.6 billion
- Projected fiscal deficit
- 9.4% of GDP in 2027
- Planned deficit target
- 7.2% of GDP, the level projected for 2026
- Financing
- The deficit is expected to be financed largely through increased public debt
- Proposed legislation
- The government plans to submit a spending-reduction package called the “Rescue Law”
- Additional funding
- The revised proposal included needs arising from the 7.4-magnitude earthquake in August
- Exchange rate cited
- $1 equaled 3,072.27 Colombian pesos
Quotes
Miguel Gomez
Colombia’s finance minister
“This is not the budget we would have liked to start our term with, but it is the budget we can afford given the current state of the national economy”
theprint.in
Sources
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