Colombia Considers Delay in 2025 Budget Spending Strategies

Colombia may delay budget spending for 2025, aiming for adjustments without impacting social programs. This follows a failed tax reform initiative, prompting plans to raise funds through tax amnesties, as revealed by Finance Minister Diego Guevara.

Colombia is contemplating a further delay in budget spending for 2025, as indicated by Finance Minister Diego Guevara during an interview with local radio. The precise amount of expenditure affected by this delay will be established in the forthcoming weeks.

Minister Guevara acknowledged the evaluation of specific areas for potential delays. However, he emphasized that these adjustments would not compromise social spending, aiming instead to recalibrate certain fiscal goals.

This development follows the government’s necessity to curtail spending after a proposed tax reform failed to gain approval in Congress. Initially, the government proposed a similar reform intending to raise funds of approximately 12 trillion pesos, equivalent to $2.9 billion.

Instead, Guevara disclosed a potential strategy involving collaboration with certain lawmakers to collect around 5 trillion pesos, approximately $1.2 billion, through tax amnesties designed to encourage tax compliance.

The Colombian government is actively exploring alternative strategies to manage its 2025 budget, including delaying certain spending while protecting social expenditures. Following the failure of a tax reform proposal, there may be efforts to generate revenue through tax amnesties, potentially raising significant funds to bolster the budget.

Original Source: www.tradingview.com