Economic committees in Congress cleared a 2027 outlay of 635 trillion pesos, or about $204 billion. With the overall size fixed, legislators now turn to dividing the pot across operating costs, debt service and investment.
The move unsettled investors already wary of Colombia's mounting debt. According to the plan, authorities expect to issue 150 trillion pesos of debt domestically next year, along with overseas borrowing equal to 88 trillion pesos.
President Abelardo de la Espriella's team calls it the "budget of truth," arguing that putting real numbers on the table can help restore investor trust. The finance ministry says the larger figure mostly reflects obligations the prior administration did not book in areas such as health care, energy and pensions. Finance Minister Miguel Gómez said Monday that the administration plans to come in well below the total approved by congress, and will rely on spending reductions rather than tax hikes to shrink the fiscal deficit.
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The finance ministry projects the deficit would surpass 9% of GDP without the planned cuts. The government also expects to tap both local and international markets, planning to borrow in pesos domestically and to raise an amount abroad that matches 88 trillion pesos. If you are watching Colombia, the headline for your wallet is the mix the administration is signaling: tighter spending rather than new taxes, alongside sizable financing needs.
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