# Paraguay infrastructure and fiscal management

> Live situation record from CLSTR: https://clstr.news/situations/paraguay-infrastructure-and-fiscal-management
> Updated: 2026-10-26T03:05:29.000Z. Sources: 85. Developments: 3.

Paraguay continues to face significant challenges regarding its national infrastructure and fiscal stability. The Ministry of Public Works and Communications (MOPC) has reported that 83.7% of the country’s 78,800-kilometer road network remains unpaved, with only 12,912 kilometers currently featuring asphalt, concrete, cobblestone, or gravel. To address this, the MOPC projects a 34% budget increase to prioritize high-impact developments and connectivity in densely populated areas.

As of late September 2026, the nation’s annualized fiscal deficit remains at 3% of GDP, totaling approximately 12 trillion guaraníes. According to the Ministry of Economy and Finance, this gap is driven by an 11.2% increase in government spending against a revenue growth of only 1.6%. Economic volatility has heightened concerns among ten major unions representing production, commerce, industry, and logistics, who have requested meetings to discuss how US dollar depreciation impacts supply chains and state revenue.

Legislative oversight remains focused on infrastructure safety following a fatal accident near the Pedrozo pedestrian viaduct. The Lower House has approved an information request to the MOPC to clarify potential inconsistencies in environmental licenses and land compensation records.

Addressing the broader infrastructure gap, the Inter-American Development Bank (IDB) reports that Paraguay requires approximately $15.175 billion in investments between 2025 and 2030. The IDB identifies transport, water and sanitation, electricity, and telecommunications as priority sectors, noting that the transport sector alone requires $6.170 billion. The report emphasizes the need for financing methods, such as private sector participation, that do not compromise public account sustainability.

## Claims

- The Dominican Republic's 2027 current spending is projected to increase by 12.3%. (corroborated by 3 sources)
- Public investment for 2027 will increase by less than 3%. (corroborated by 3 sources)
- Public investment in 2027 will reach RD$99,427.5 million. (corroborated by 3 sources)
- There are 209 large public investment projects planned for the 2027 period. (corroborated by 3 sources)
- The transport sector accounts for 92 investment projects. (corroborated by 3 sources)
- Santo Domingo province is allocated RD$13,722.6 million for investment. (corroborated by 3 sources)
- Santiago province is allocated RD$13,323 million for investment. (corroborated by 3 sources)
- The National District is allocated RD$12,230.7 million for investment. (corroborated by 3 sources)

## Timeline

### 2026-10-26: Inter-American Development Bank funds infrastructure projects in Argentina and Paraguay

The IDB is financing major infrastructure projects, including a US$ 200 million electrical grid expansion in Argentina and an US$ 85 million health digitalization plan in Mendoza.

14 sources. https://clstr.news/cluster/paraguay-requires-15-billion-for-infrastructure-development

### 2026-10-20: Paraguay faces fiscal deficit and economic pressure

Paraguay's fiscal deficit hit 3% of GDP as government spending outpaces revenue growth. Meanwhile, industry unions seek talks on currency volatility and lawmakers probe public works following a fatal accident.

72 sources. https://clstr.news/cluster/catamarca-governor-ral-jalil-faces-criticism-over-mining-focus-amid-local-crisis

### 2026-10-05: Paraguay road network remains 83.7% unpaved

Paraguay's road network remains 83.7% unpaved, prompting the Ministry of Public Works to project a 34% budget increase to improve national connectivity and infrastructure.

3 sources. https://clstr.news/cluster/paraguay-road-network-remains-837-unpaved

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Cite as: Paraguay infrastructure and fiscal management. CLSTR, https://clstr.news/situations/paraguay-infrastructure-and-fiscal-management