BOGOTA — Colombia's Congress approved the government's 2027 spending budget on Monday, totaling 634.9 trillion pesos, equivalent to $206.6 billion, as the nation confronts a deterioration in public finances.
The Senate and lower house passed the revised budget after lawmakers returned an initial proposal. The modified version allowed right-wing President Abelardo De La Espriella's recently inaugurated administration to incorporate additional funding needs, including expenses related to a 7.4-magnitude earthquake that struck Colombia in August.
The approved budget projects a fiscal deficit of 9.4 percent of GDP, to be financed primarily through increased public debt. Finance Minister Miguel Gomez told Congress on Monday the budget represented what the government could afford given current economic conditions.
De La Espriella's administration plans to introduce a tax reform package called the "Rescue Law" to reduce public spending next year and lower the fiscal deficit to 7.2 percent of GDP, matching the deficit projected for 2026, Gomez said.
Juan Carlos Ramirez, who heads the Independent Committee for Fiscal Rule Management, warned in late August that Colombia would face a more critical public finance situation if the government's proposed 2027 budget was approved.
De La Espriella attributed the fiscal decline to the administration of his predecessor, leftist Gustavo Petro, citing corruption and misuse of resources, though he did not provide evidence to support the claims.
