Petro government leaves state payroll 22 trillion pesos more expensive

Gustavo Petro's government ends its term with a 22.7 trillion peso rise in the state payroll and a fiscal deficit adjusted to 5.3% of GDP.

Over the past three years the primary deficit of the Central National Government rose from 3.2 trillion to 63 trillion pesos.

The Finance Ministry raised the total spending projection to 431 trillion pesos for 2026, 7.3 trillion more than previously forecast.

Health protection lawsuits grew 17.9% between 2024 and 2025, reaching 312,500 cases.

The Fiscal Observatory of Universidad Javeriana noted that the minimum wage increase added 1.3 trillion pesos to personnel spending.

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President Gustavo Petro and Finance Minister Germán Ávila announcing Colombia's $16 trillion tax reform at a press conference.
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Finance ministry confirms $16 trillion tax reform after court ruling

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After the Constitutional Court struck down the December 2025 emergency economic decree, the Colombian government will present a tax reform to raise $16 trillion. Finance Minister Germán Ávila and President Gustavo Petro confirmed the plan in response to the fiscal imbalance. The measure aims to avoid cuts to social spending and address inherited deficits.

Chile's Dirección de Presupuestos (Dipres) reported that the Government's gross debt hit US$158.215 billion by the end of Q1 2026, or 42.6% of GDP. Fiscal cash reserves fell to US$597 million, as fiscal revenues rose 0.9% in real annual terms and public spending 0.7%. The report notes heterogeneous performance driven by mining.

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Finance Minister Jorge Quiroz presented the first-quarter 2026 Public Finance Report and accused errors in the previous government's debt projections.

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