BOGOTA (Reuters) – Colombia needs an additional adjustment of some 46 trillion pesos ($11.1 billion) in the 2025 budget to meet the fiscal rule said Astrid Martinez, president of the autonomous committee on fiscal rule (CARF) on Thursday.
The new projection is higher than the previous estimate of 40 trillion pesos, as CARF forecasts the country will fall short of the tax collection target set by the government for this year, Martinez said in a presentation at the annual congress of pension funds.
Colombia is going through a phase of deterioration on its fiscal accounts, amid lower tax revenues, high public debt and strong limitations to reduce spending.
“We believe that collection will be lower than projected, taking into account GDP growth and the elasticity of collection in relation to this growth,” explained Martinez.
The government announced earlier this year it will cut its 2025 spending budget by 12 trillion pesos to 511 trillion pesos, after Congress rejected a tax reform proposal at the end of 2024.
The Ministry of Finance set a fiscal deficit target of 5.1% of GDP, which analysts see as unlikely to be achieved.
($1 = 4,139.75 Colombian pesos)
(Reporting by Nelson Bocanegra)
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