Colombia Proposes Fiscal Bill With 15% Spending Cuts

Colombia’s government has sent Congress a sweeping fiscal “Rescue Law” to curb spending, raise revenue and address worsening public finances, with the government warning that the deficit could reach 9.4% of GDP in 2027 under current projections. Officials say about 70% of the proposed adjustment would come from spending restraint, with the remainder coming from higher-income taxpayers and other revenue measures. The package would broaden the value-added tax base, expand or raise levies on products including tobacco, alcohol and sugary drinks, revise personal income taxes, impose a temporary financial-sector surcharge and strengthen anti-evasion efforts. It also proposes lower tax rates for smaller businesses and incentives for large investments; the bill now faces a contentious debate in Congress.