Colombia’s Congress has approved a 634.9 trillion peso ($201.14 billion) budget for 2027, increasing defence spending while cutting allocations linked to a decade-old peace agreement.
Lawmakers approved the spending plan early on Tuesday, with the lower house voting 112 in favour and one against. The Senate had passed the bill on Monday.
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The budget represents a significant increase from the 555.8 trillion pesos allocated for 2026, as the government faces mounting pressure to stabilise public finances and control rising debt.
Colombia, Latin America’s fourth-largest economy, is projected to record a fiscal deficit of 9.4 per cent of gross domestic product (GDP) in 2027.
Public debt is also expected to rise this year and next, further complicating efforts to regain the investment-grade credit rating the country lost in 2021.
President Abelardo De La Espriella’s administration has pledged to reduce government spending and introduce a proposed “Rescue Law” aimed at cutting the 2027 budget and lowering the fiscal deficit to 7.2 per cent of GDP.
The government says the proposed measures are necessary to address the country’s challenging economic situation, although the planned spending increase highlights the difficulty of balancing fiscal discipline with defence and other national priorities.
Finance Minister Miguel Gomez thanked lawmakers for approving the budget, expressing confidence that the government would work to pull the country out of its economic difficulties.
“Thank you all for giving us this vote of confidence,” Gomez said after the Senate approved the bill.
The budget now sets the framework for government spending in 2027, as Colombia seeks to manage its debt burden, strengthen economic stability and restore investor confidence.
Reuters
