Bolivia Lower House Approves President Paz's 2026 Budget

Bolivia’s Chamber of Deputies passed President Rodrigo Paz’s reworked 2026 budget on July 4 after more than five hours of debate. The revised plan aims to cut the fiscal deficit to about nine percent of GDP, down from a larger gap inherited from the previous administration. To achieve this, the bill trims central‑government salary spending by roughly 976 million bolivianos and waives import duties and value‑added tax for five years on equipment and inputs for farming, industry, construction, transport and mining.

The budget also allocates additional funding for public universities, including about 410 million bolivianos for salaries and research. Economy Minister José Gabriel Espinoza presented the vote as a result of negotiation among rival blocs. Opposition leader Doria Medina criticised the budget as “insufficient in all areas,” saying it fails to reduce bureaucratic spending or address the state’s deficit. The bill now moves to the Senate for final approval. The legislation comes as Bolivia faces its first recession in four decades, low foreign‑currency reserves and fuel shortages.