Colombia’s inside minister says proposed $2.73 billion fiscal reform not viable

BOGOTA (Reuters) – Colombia’s Inside Minister Juan Fernando Cristo on Monday mentioned the federal government’s proposed 12 trillion peso ($2.73 billion) fiscal reform was “not viable,” however added {that a} smaller sum may very well be achieved.

Colombia’s authorities offered its newest fiscal reform to Congress in September, which it hopes will finance spending in 2025 by rising taxes and taking up extra debt.

“I consider, to be utterly frank and honest, that right now it isn’t viable to contemplate a financing legislation that raises the 12 trillion wanted for the finances, but it surely’s attainable to advance in a number of factors of the reform that give a decrease determine,” Cristo informed journalists in Bogota.

On the finish of November, the federal government mentioned it might lower spending this 12 months by 28.4 trillion pesos, citing lower-than-expected tax revenues.

The Autonomous Fiscal Rule Committee final month mentioned the 2024 finances wanted a 56.2 trillion peso lower to adjust to the so-called fiscal rule, which was created in 2011 to implement coverage constraints that forestall the deterioration of public funds.

($1 = 4,396.52 Colombian pesos)