Colombia will make a budget cut of $20 billion to adjust public spending
The Colombian government announced that to comply with the fiscal rule, a budget cut of $20 million will be made, equivalent to 1.2 % of GDP
Colombia announced a budget cut, amounting to $20 billion dollars, to comply with the fiscal rule. The measure was formalized through decree 766 of 2024.
The adjustment to the budget represents, according to Colombian government sources, 1.2 % of the Gross Domestic Product.
With this decision, Colombia seeks to “guarantee compliance with the fiscal rule in line with the 2024 Financial Plan, given the possibility that the tax collection at the end of the year is lower than projected.”
According to the Ministry of Finance, the fiscal rule constitutes a financial planning tool used to “establish specific goals on the fiscal balance in relation to the level of public debt, thus ensuring the credibility and sustainability of the country’s finances.”
Although the budget cut directly affects some operating items and allocations, the Ministry of Finance assured that “it will not affect investment projects previously contracted and in the execution phase. In addition, essential sectors such as education, health and defense.”
Additional measures will minimize the impact of the cut in programs related to the promotion of economic activity and productive transformation with social and environmental justice.
M.Pino
Source: rtvnoticias
(Reference image source: Unsplash+, in collaboration with Getty Images)
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