Colombia’s government has introduced a 2025 budget proposal amounting to 523 trillion pesos ($130 billion) to lawmakers, as per a statement from the finance ministry. This proposal arrives amid growing fiscal challenges that are impacting President Gustavo Petro’s policy agenda.
The new budget shows an increase from the current year’s 483-trillion-peso budget, which was reduced by 20 trillion pesos in June. The proposal aims to address Colombia’s economic and social needs as Petro enters the second half of his presidential term, facing the challenge of advancing his priorities without a solid majority in Congress.
Lawmakers must approve the budget bill by October 20, and significant changes could be made during the legislative process. Diego Guevara, Colombia’s vice-minister for finance, mentioned that the government will seek an additional 12 trillion pesos through a new financing law to support the budget plan.
“This is a budget that bets on economic reactivation,” stated budget director Jairo Bautista during a press conference. “It manages to target fundamental spending objectives in key economic sectors such as health, education, and infrastructure.”
The proposed budget allocates approximately 327.9 trillion pesos for operating expenses, 112.6 trillion for debt service, and 82.4 trillion for investments. The finance ministry highlighted that the budget aligns with next year’s targets of 3% economic growth and a fiscal deficit of 5.1% of GDP, as outlined in a mid-term framework last month.
Additionally, the ministry plans to propose legislation to accelerate certain fiscal changes initially set to take effect in 2026. Earlier this month, Colombia’s autonomous fiscal committee, CARF, indicated that further adjustments might be necessary to comply with fiscal rules and stabilize the country’s debt amid risks to tax collection goals.
As reported by Reuters, the proposed budget reflects Colombia’s efforts to navigate its economic challenges while aiming for sustainable growth and fiscal stability.
