Colombian Congress approves $201.1 billion budget for 2027

Colombian lawmakers ​approved spending distributions for next ​year's 634.9 trillion peso ($201.14 billion) ‌budget early ​on Tuesday, trimming spending linked to a 10-year-old peace agreement, boosting defense funds and reducing debt ‌service payments.

The budget, which projects a 2027 fiscal deficit of 9.4% of gross domestic product, is a significant increase from the 555.8 trillion peso ‌budget for this year. The bigger budget comes as Colombia, Latin ‌America's fourth-largest economy, struggles to put its public accounts in order. Public debt is expected to rise this year and next, moving the country further from regaining the investment-grade rating ⁠it ​lost in ⁠2021.

The government of new right-wing President Abelardo De La Espriella had promised to trim ⁠remaining spending for this year and said it plans to propose a "Rescue Law" ​to Congress to cut 2027 spending and reduce the fiscal deficit ⁠to 7.2% of GDP. Lawmakers in the lower house approved the budget bill with 112 ⁠votes ​in favor and only one against it.

"Thank you all for giving us this vote of confidence. We are going to succeed ⁠in getting the country out of this very complex economic situation," Finance ⁠Minister Miguel ⁠Gomez said after the Senate passed the bill on Monday. ($1 = 3,156.5000 Colombian pesos)