Colombia faces fiscal risks and service disruptions

Colombia is facing significant administrative and fiscal challenges. The association of subsidized notaries has warned that approximately 500 notary offices, primarily in small municipalities and rural areas, are at risk of suspending services due to budget shortages and delays in funding. The issue stems from the management of the Notary Special Account Fund, with the sector noting that the 2026 budget programming provides only 12 transfers when 14 are required to maintain operations.

Separately, the Office of the Inspector General (Procuraduría General de la Nación) has ordered public entities to review service provision contracts. This follows the identification of 6,127 active judicial processes regarding claims of ‘hidden’ labor relationships, known as ‘contratos realidad’. These lawsuits represent a potential fiscal risk exceeding $1.6 trillion pesos. Between 2023 and 2026, over 2.2 million service contracts were executed across 1,766 national and territorial executive branch entities, totaling $60.57 trillion pesos.