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The Colombian government announced a Fiscal Adjustment Law to address a projected 9.4% GDP deficit in the 2027 National Budget.

The Colombian government announced a Fiscal Adjustment Law of approximately $45 billion to manage a projected 9.4% GDP deficit for the 2027 National Budget. This law aims to reduce the primary deficit from 4.5% to 2.3% of GDP and is currently awaiting approval from Congress. The 2027 National Budget increased from $575.7 billion to $634.9 billion, representing a $59.3 billion rise. This increase reflects a more sincere accounting of spending commitments, including unamortized payments and operational obligations like pensions and health. However, the budget's sincerity is financed primarily through debt, as capital resources grew by 53.4% due to internal and external credit. The budget also shows a decline in projected current revenues, which fell by $10.7 billion because $30.2 billion in contingent tax revenues were excluded. The primary balance deteriorated from -0.5% to -4.5% of GDP. The news of the budget's size and the debt depreciation of 25 points on average caused the peso to depreciate by more than 2%.

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