Ministry of Economy and Finance releases 2026 Public Finance Report

The Ministry of Economy and Finance has published the 2026 Public Finance Report, outlining fiscal projections through 2031. Following a 6.6% economic growth rate in 2025, the national economy is projected to expand by 4.5% in 2026, driven by the services, manufacturing, agriculture, and electricity sectors.

Regarding fiscal management, the report anticipates a temporary increase in the deficit to 3.2% in 2026 and 3.9% in 2027. This shift is intended to facilitate the settlement of inherited debts with medical supply companies and road construction firms. The government aims to return to the 1.5% deficit limit mandated by the Fiscal Responsibility Law by 2028.

Central administration debt is projected to decrease from 36.1% of GDP in 2025 to 31.0% in 2026, aided by the appreciation of the national currency. Evaluations conducted under International Monetary Fund methodology indicate that public debt levels remain manageable. Additionally, the 2027 General Budget Project is expected to reach PYG 166.3 trillion, with significant allocations directed toward public health.