Following last week's announcement of plans for an economic emergency decree, Interior Minister Armando Benedetti confirmed its signing by all cabinet members on December 18 and filing the next day. The measure addresses a 16.3 trillion peso shortfall in the 2026 budget after tax reform's failure, targeting high-income sectors to secure public debt payments and avoid rising country risk.
Interior Minister Armando Benedetti announced the decree declaring a state of economic emergency—previously detailed in draft form by Finance Minister Germán Ávila—has been fully signed and submitted. This exceptional step ensures resources for priority state obligations, with the burden placed on those with greater economic capacity, such as the 'mega-rich' via taxes on liquors, gambling, and large financial entities.
Ávila reiterated the 16.3 trillion peso gap in the 2026 General National Budget. Planned revenues near 16 trillion pesos through measures including an asset tax on entities over 40,000 UVT, extended financial transaction tax, VAT on online games, tobacco hikes, and a temporary levy on hydrocarbon and coal extraction.
Benedetti warned that failure to act would elevate country risk, erode international confidence, and jeopardize infrastructure like 4G projects, as constitutional priorities demand debt servicing first.
Business groups, including the National Business Council and Andi (led by Bruce Mac Master), criticized the decree's constitutionality, arguing the foreseeable deficit lacks the required unforeseen gravity and imminence. They seek Constitutional Court review and potential suspension to avert harm.
