Colombia’s Finance Minister announced a possible delay in 2025 budget spending, with specifics to be determined shortly. This follows a failed tax reform, leading to potential tax amnesties to raise funds without affecting social expenditures.
Colombia is contemplating a potential delay in budget spending for the year 2025. Finance Minister Diego Guevara announced on local radio that the precise amount of the delay will be determined in the upcoming weeks. The government aims to reassess certain expenditure areas without compromising social spending. “We are evaluating delaying some additional areas, that’s true, with a more detailed revision and without affecting social spending but rather grounding some goals a bit,” Guevara stated during the interview.
The Colombian government was compelled to scale back its spending plans for 2025 following the failure of a proposed tax reform to gain congressional approval. Initially, the administration had considered introducing another tax reform later this year, anticipated to raise approximately 12 trillion pesos, equivalent to about $2.9 billion. However, Finance Minister Guevara indicated that an alternative strategy is being considered, one that would involve collaborating with legislators to generate around 5 trillion pesos, or approximately $1.2 billion, via tax amnesties designed to encourage timely payments.
In summary, the Colombian government is actively evaluating a postponement of spending for the 2025 budget, with specific details to be finalized soon. This decision comes after a previous tax reform initiative did not gain legislative support. Moving forward, the government is considering tax amnesties as a means to boost revenues while ensuring that essential social spending remains intact.
Original Source: www.tradingview.com
