Colombia Congress Approves Record 2027 Budget as Deficit Hits 9.4% of GDP

Colombia’s Congress approved a 2027 budget of 634.9 trillion pesos, about $206 billion, amid worsening public finances and a projected record fiscal deficit of 9.4% of GDP. Debt servicing is expected to consume 155.4 trillion pesos, roughly one-quarter of planned spending, as borrowing has increased and financing costs have risen. The budget’s detailed allocations still require a second legislative vote by Oct. 20, after which the government could issue the plan by decree if Congress misses the deadline. Finance Minister Miguel Gomez said the spending plan reflects what the economy can afford, while President Abelardo De La Espriella’s administration has proposed a tax package known as the “Rescue Law” to reduce the deficit to 7.2% of GDP. The administration has blamed the deterioration on the prior government of Gustavo Petro, while fiscal watchdogs have warned that the approved budget could deepen Colombia’s financial vulnerabilities.