Bolivian President Rodrigo Paz Pereira, along with Minister of Economy José Gabriel Espinoza, announced the comprehensive overhaul of the 2026 General State Budget (PGE), which includes a 30 % cut in public spending.

This is the largest adjustment implemented in the country in over a decade. The president stated that the measure “seeks to dismantle an excessively spending-oriented system inherited from the previous government and redirect resources toward investment, macroeconomic stability, and the efficiency of the state apparatus.”

As a first step in this reform, the government plans to request the return of the 2026 General State Budget (PGE-2026) from the Chamber of Deputies. This budget was prepared and submitted to the legislature in the final weeks of the previous administration, led by Luis Arce, in order to review it and replace it with a plan aligned with the new fiscal priorities.

The president stated that they will reformulate this budget, which was designed for spending rather than investment or to benefit Bolivians.

Minister Espinoza added that “the Executive Branch will incorporate an article into the new law that will allow for a review of the budget until February 2026 under a strict rule: reducing fiscal spending by at least 30 percent. This will require a detailed evaluation of each public institution, its operating budgets, and current programs.”

The government will focus on crucial issues for Bolivia’s economy and development, such as defining the exchange rate of the dollar and the new fuel subsidy policy. According to the Constitution of the South American nation, the Legislative Assembly must debate, modify, or approve the new budget within 60 days of receiving it; otherwise, the bill is automatically enacted.

M.Pino

Source: xinhua

(Reference image source: Towfiqu barbhuiya on Unsplash)

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The inflationary phenomenon currently affecting the Bolivian economy is prompting the country to consider including cryptocurrencies and stablecoins in its economic system.

This measure also seeks to facilitate the adoption of new technologies that allow for offering financial products based on digital assets.

Bolivia could then use stablecoins, such as USDT, as a hedge against escalating inflation. In fact, it is known that “companies like Toyota and BYD already accept payments in USDT due to the dollar shortage.”

The government “announced a series of reforms that will integrate cryptocurrencies and stablecoins into the official financial system, with the aim of modernizing the economy and responding to the growing use of digital assets as an alternative to inflation.”

This was emphasized by the Minister of Economy, José Gabriel Espinoza, who told Reuters that “banks will be able to hold crypto assets on behalf of their clients. They will also be able to use them in savings products, credit, and loans.”

The adoption of cryptocurrencies in Latin America has grown to the point of making the region “one of the main global markets.”

M.Pino

Source: diariobitcoin                                                 

(Reference image source: Michael Förtsch on Unsplash)

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La entrada Bolivia to face inflation by integrating cryptocurrencies and stablecoins into its economy apareció primero en Bitfinance.