Colombia's President‑elect De La Espriella Proposes $14 B Fuel Subsidy Cut

Economic analysts at the ANIF think the new Colombian administration can trim the Fuel Price Stabilization Fund deficit by gradually ending fuel subsidies, saving an estimated $14 billion (about 0.7 % of GDP). The same study recommends a broader rationalisation of public investment that could free up $27 billion (1.4 % of GDP) by prioritising efficient, productive projects.

President‑elect Abelardo De La Espriella inherits a fiscal gap equal to 6.4 % of GDP, public debt at 60.5 % of GDP and inflation running at 6.14 %, well above the 3 % target. The incoming government plans to cut overall public spending by up to 40 % by 2030 and is counting on a $9 billion loan from the Development Bank of Latin America (CAF) to finance key projects while pursuing austerity measures that could have social impacts.