El Salvador Legislative Commission begins 2027 budget review

The Legislative Assembly's Finance Commission has commenced its study of the 2027 state budget proposal for El Salvador. Presented by Finance Minister Jerson Posada, the proposed budget totals $12,421.1 million, representing an increase of $1,865 million compared to 2026.

A central pillar of the proposal is education, with an allocation of $3,416 million, which accounts for approximately 27.5% of the total budget. This includes specific funding for the University of El Salvador, the 'Two Schools per Day' project, and school improvement plans.

The government anticipates a financing gap of $515 million, which Minister Posada suggested could be covered through the issuance of securities or complementary loans. While current revenue is expected to rise due to administrative measures like electronic invoicing and growth in tourism and construction, critics have raised concerns regarding debt sustainability, the distribution of health resources, and potential budget cuts in several ministries.