Latin American nations present 2027 budget proposals amid fiscal challenges

Several Latin American countries have presented their 2027 budget proposals, revealing a mix of projected surpluses and significant fiscal deficits.

In Nicaragua, the government proposed a budget with projected revenues of C$195,136.7 million and expenditures of C$168,238 million, aiming for a seventh consecutive year of surplus. The plan prioritizes social spending, allocating 57.4% of total expenses to social programs and poverty reduction, including investments in health, education, and infrastructure projects like the Punta Huete International Airport.

Conversely, Costa Rica faces a public income deficit of approximately USD 882.5 million, prompting the Ministry of Finance to propose budget cuts of USD 368.4 million. These adjustments include reducing institutional spending and eliminating vacant positions. Meanwhile, the Comptroller General in Costa Rica reported significant deficiencies in tax controls, noting that potential tax non-compliance reached ¢1.8 trillion between 2023 and 2026.

In the Dominican Republic, the 2027 budget proposal anticipates a fiscal deficit of RD$327,000 million, equivalent to 3.4% of GDP. A major point of concern is debt interest payments, which are projected to reach RD$351,327 million, or roughly RD$962 million daily.

In Colombia, the IMF has warned that the country's fiscal situation is unsustainable, citing a primary deficit of 3.5% of GDP and public debt exceeding 60% of GDP. A technical mission is scheduled for November to evaluate stabilization measures.