# Colombia fiscal and legislative reform efforts > Live situation record from CLSTR: https://clstr.news/situations/colombia-fiscal-and-legislative-reform-efforts > Updated: 2026-10-21T20:25:08.000Z. Sources: 41. Developments: 4. Colombia is navigating significant fiscal and legislative hurdles as the government attempts to manage a growing deficit. Initially, the focus centered on tax reform debates to address a projected deficit that could reach 9.4% of GDP. Finance Minister Miguel Gómez has engaged with international investors to build confidence in legislative support for adjustments aimed at reducing the deficit by more than four percentage points by 2030. Concerns persist regarding tax revenue, with projections suggesting 2027 revenues may fall to 14% of GDP due to tax evasion and wealth tax avoidance. In early October 2026, the government prepared for the approval of the 2027 General National Budget, totaling 634.95 trillion pesos (approximately US$201 billion). Finance Minister Gómez indicated that an economic rescue project would be presented to Congress as part of a three-stage fiscal adjustment plan. Additionally, President Abelardo de la Espriella announced a project to reform the General Royalty System to support large-scale infrastructure and prevent resource fragmentation. Other legislative priorities included competition law, criminal justice reform, and an anti-terrorism bill. On October 20, 2026, Congress approved the 2027 budget, but a procedural error regarding Article 65—concerning financial coverage for oil prices, fuel, and the dollar—forced the administration to issue the budget via decree. Because the Senate and House approved different versions of the article, the reconciliation process was compromised. Vice President José Manuel Restrepo announced that the Executive would apply Article 59 of the Organic Budget Statute, adopting the original government project with modifications from the first debate. This move results in 11.6 trillion pesos less for investments and operations compared to the version negotiated by legislators, while increasing debt repayment to 155 trillion pesos. ## Claims - The Colombian Congress approved the 2027 General National Budget for 634.9 trillion pesos. (corroborated by 16 sources) - The Colombian government will decree the 2027 budget based on the version approved in the first debate. (corroborated by 9 sources) - The legislative error involved Article 65 regarding financial coverage for oil, fuel, and dollar price variations. (corroborated by 9 sources) - The government plans to present a 'Rescue Law' to address the fiscal situation. (corroborated by 8 sources) - The budget includes a reduction of 181.4 billion pesos for the Special Jurisdiction for Peace (JEP). (corroborated by 6 sources) - Debt payments in the budget are set at 155 trillion pesos. (corroborated by 6 sources) - The 2027 budget is 14.2% higher than the 2026 budget of 555.8 trillion pesos. (corroborated by 5 sources) - The Chamber of Representatives approved the bill with 112 votes in favor and 1 against. (corroborated by 5 sources) - The health sector received 5 trillion pesos in additional resources during the legislative process. (corroborated by 4 sources) - The government projects a fiscal deficit of 9.4% of GDP for 2027. (corroborated by 4 sources) - The budget will be issued by decree due to a lack of reconciliation between the Senate and House regarding Article 65. (corroborated by 4 sources) - The budget allocates 93 trillion pesos to education. (corroborated by 3 sources) ## Timeline ### 2026-10-21: Colombia issues 2027 national budget by decree Colombia has decreed its 2027 national budget of 634.9 trillion pesos after a legislative error prevented Congress from reconciling differences regarding fuel and oil price risk coverage. 13 sources. https://clstr.news/cluster/colombia-budget-process-error-leads-to-decree-based-funding ### 2026-10-19: Colombia Congress approves 634.9 trillion peso 2027 national budget Colombia's Congress approved a 634.9 trillion peso budget for 2027, increasing education and health funding while cutting resources for the Special Jurisdiction for Peace (JEP). 28 sources. https://clstr.news/cluster/colombia-faces-economic-decline-and-budget-deadlock ### 2026-10-02: Colombia faces key economic and legislative challenges in late 2026 Colombia faces critical legislative hurdles in late 2026, including the 2027 national budget approval, a fiscal adjustment plan, and reforms to the royalty system and competition laws. 8 sources. https://clstr.news/cluster/colombia-faces-key-economic-and-legislative-challenges-in-late-2026 ### 2026-09-19: Colombia faces fiscal challenges amid tax reform debates Colombia faces fiscal instability as the government pushes for deficit reduction amid concerns over declining tax revenues and the effectiveness of recent tax reforms. 2 sources. https://clstr.news/cluster/colombia-faces-fiscal-challenges-amid-tax-reform-debates --- Cite as: Colombia fiscal and legislative reform efforts. CLSTR, https://clstr.news/situations/colombia-fiscal-and-legislative-reform-efforts