Petro government's PGN execution lowest in 20 years

With 200 days left in Gustavo Petro's government, the Presupuesto General de la Nación (PGN) execution shows the lowest rates in two decades. As of November 2025, the average execution stands at 72.9%, below the century average of 74.9%. Sectors like health and education lead, while transportation and the presidency lag behind.

January 20, 2026, not only marks the first year of Donald Trump's government in the United States but also the final 200 days of Gustavo Petro's term in Colombia. This period has been characterized by the failure of two tax reforms in 2024 and 2025, aimed at financing 12 and 16.3 trillion pesos of the PGN, respectively.

According to Ministry of Finance data as of November 2025, PGN execution reaches 74.2%, a 6.1 percentage point increase from 2024, but still below the historical average of this century at 74.9%. The average during Petro's government, based on data up to November, is 72.9%, with annual executions of 76.4% in 2023, 68.1% in 2024, and 74.2% in 2025. In comparison, Juan Manuel Santos's second term had the highest average in 20 years at 79.5%, followed by his first term and Álvaro Uribe Vélez's second term, both at 74.6% excluding debt service.

Of the 32 sectors allocated PGN resources, only 25% exceeded the national average execution. Health led with 87.6%, followed by education at 87.5% and the Integral System of Truth, Justice, and No Repetition (JEP) at 79.6%. Other strong performers include the Attorney General's Office at 78.6%, Defense and Police at 78.3%, Equality and Equity at 77.8%, Labor at 75.9%, and Control Bodies at 73%. At the lower end, Transportation recorded just 30.8%, the Presidency of the Republic 34.3%, and the National Registry 43.6%.

For the 2025 PGN, with appropriations of 526.7 trillion pesos, 448.1 trillion (85.1%) were committed, 407.8 trillion (77.4%) obligated, and 403.7 trillion (76.6%) paid. Functioning expenses reached 80.2%, debt service 89.2%, and investment only 51.0%. These figures highlight implementation challenges during Petro's administration.

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Colombian Finance Minister presenting 2026 economic projections including dollar rate at $3,801 and Brent oil at $59.2, amid charts and a skeptical press audience.
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Colombian government projects dollar at $3,801 and brent at us$59.2 for 2026

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The Ministry of Finance published the Financial Plan for 2026, projecting 2.6% GDP growth and 5.8% inflation. The document estimates an average dollar rate of $3,801 and Brent barrel at US$59.2, though analysts warn of calculation errors and lack of concrete measures for fiscal cuts. The publication was delayed by more than a month compared to previous years.

The Ministry of Finance reported that at the end of January 2026, the sectors of Foreign Affairs, Environment, and Education recorded the highest budget executions in the National General Budget. These reached 10.5%, 8.6%, and 6% respectively, above the overall average of 3.9%. Total payments amounted to 17.1 trillion pesos, with 8.2 trillion allocated to debt service.

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Colombia's Ministry of Finance reported that Foreign Affairs, Education and Health had the highest budget executions at the end of February 2026, at 16%, 14.4% and 13.3% respectively. The overall average across sectors was 10.4%. Science, Technology and Innovation, Sports and Housing lagged with 2.7%, 2.5% and 1%.

President Gustavo Petro defended the government's decree eliminating the special services prime for congressmen, worth $16,914,540 monthly. The non-retroactive measure will take effect for new legislators from July 20, 2026. Petro argued it is fair given Congress's rejection of tax reforms targeting the wealthy.

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President Gustavo Petro blamed the Banco de la República's high interest rates for the housing sector's contraction, which has seen 10 consecutive quarters of decline. The leader stated that these positive and growing real rates have prevented users from affording payments. Analysts, however, emphasize the drop in social interest housing as the main factor.

The Palace has received the ratified 2026 General Appropriations Bill from Congress, placing any changes in the hands of President Ferdinand Marcos Jr. Executive Secretary Ralph Recto confirmed that a thorough review of the P6.793-trillion budget has begun, expected to last about a week.

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The Senate's Finance Committee started reviewing the public sector readjustment bill, presented by Finance Minister Nicolás Grau. Deputies approved a 3.4% gradual salary increase but rejected the 'tie-breaker norm' aimed at greater job stability. Opposition anticipates rejecting that provision again in the Senate.

 

 

 

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