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[BUSINESS] · Colombia · 11 sources

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Colombia Government submits $634.9 trillion peso 2027 budget

The Colombian government, under President Abelardo De La Espriella, has submitted a revised 2027 General Budget to Congress totaling approximately $634.9 trillion pesos. Finance Minister Miguel Gómez Martínez described the proposal as the ‘budget of truth,’ contrasting it with the previous administration’s plan, which he characterized as unrealistic and underfunded.

The increased budget amount, which is roughly $60 trillion pesos higher than the initial proposal returned by Congress, accounts for several critical factors. These include the fiscal impact of a recent earthquake, the need to cover previously unallocated obligations in pensions, health, and electricity subsidies, and funding for upcoming regional elections. The government also noted that the previous administration’s projections for inflation and GDP growth were inaccurate.

A significant portion of the new budget is dedicated to debt service, which is projected to rise to $155.4 trillion pesos, representing 24% of the total budget. This marks the highest level of debt service in the country’s history. Consequently, the government estimates a real fiscal deficit of 8.2% of GDP. To address these fiscal pressures, the administration plans to introduce a ‘rescue law’ in late August aimed at reducing state spending by $40 trillion pesos.

Entities

Abelardo De La Espriella · Colombian government · Congress of Colombia · Congress of the Republic · Gustavo Petro · Miguel Goméz · Miguel Gómez Martínez · Ministry of Finance · Republic of Colombia

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