Colombia Proposes $130 Billion Budget Amid Fiscal Challenges

Colombia's government has proposed a 523 trillion peso ($130 billion) budget for 2025 amid mounting fiscal challenges. President Gustavo Petro's administration aims to secure financing and address key economic sectors despite lacking a solid Congress majority. The proposal includes operating expenses, debt service, and investments. Congress must approve the bill by October 20.

Colombia's government has put forth a 523 trillion peso ($130 billion) budget proposal for 2025, facing significant fiscal challenges, the finance ministry announced on Monday. This new budget, larger than the current year's 483 trillion pesos, follows a 20 trillion peso cut in June.

As President Gustavo Petro enters the latter half of his term, he faces the task of pushing through his economic and social agenda without solid Congressional support. Congress has until October 20 to approve or modify the budget bill. Diego Guevara, vice-minister for finance, mentioned that the government plans to seek an additional 12 trillion pesos through new financing legislation.

Budget director Jairo Bautista emphasized the budget's focus on economic reactivation, targeting critical areas such as health, education, and infrastructure. The proposal includes 327.9 trillion pesos for operating expenses, 112.6 trillion for debt servicing, and 82.4 trillion for investments. The finance ministry also indicated that the budget aligns with growth and fiscal deficit goals for next year. Further fiscal adjustments may be necessary to meet tax collection targets and stabilize debt, according to the country's autonomous fiscal committee, CARF.

(With inputs from agencies.)