President Gustavo Petro signed Decree 1390 of 2025 declaring a 30-day economic and social emergency in Colombia after the Congress sank the financing bill. The measure aims to raise funds to cover a $16.3 trillion deficit and ensure essential services like health. The announcement sparks legal and political debate, with reviews pending from the Constitutional Court and Congress.
On December 24, 2025, the Colombian government, led by President Gustavo Petro, declared a state of economic and social emergency across the national territory via Decree 1390 of 2025. This decision follows Congress's rejection of the financing bill, crucial for the General National Budget, leaving a $16.3 trillion gap in expected revenues.
The 20-page decree justifies the emergency due to a 'grave and imminent threat' to the economic and social order. Accumulated factors include pending payments for the Capitation Payment Unit (UPC) in health, the impact of the winter wave, judicial sentences worth $1.5 trillion, contractual debts of $5.1 trillion, commitments to conflict victims for $1.6 trillion, debt restrictions, and the failure of two tax reforms aiming to raise $12 trillion and $16.3 trillion. It also cites public order disruptions and risks to social leaders.
For the 30-day duration, the Executive can issue decrees with the force of law. Proposed measures include adjustments to a progressive wealth tax for large capitals, higher levies on the financial sector, modifications to VAT and consumption taxes, and 'healthy' taxes on alcohol and cigarettes. Finance Minister Germán Ávila denied rumors of raising the 4x1000 to 5x1000 but confirmed evaluations for a tiered wealth tax. Additional revenue is estimated at up to $4 trillion, aimed at social investment and deficit closure.
In his December 23 allocution, Petro defended using the emergency to fund the 2026 health budget, the largest in Colombia's history with $258.4 trillion invested during his term, exceeding the previous government by $24.98 trillion. He highlighted the drop in infant mortality from 6,330 to 4,005 cases, credited to EPS control: 'We, by reducing the EPS and controlling them in half, have achieved that fewer and fewer children in their mothers' wombs die one month later.' He announced a single central purchasing entity for medicines to combat speculation.
The Constitutional Court will review the decree starting January 13, 2026, after the judicial recess, assessing if the bill's sinking warrants constitutional exception. Congress, on recess, faces calls for urgent sessions; Senator Carlos Fernando Motoa requested political oversight and unconstitutionality challenges. Senate President Lidio García stated: 'Our decision is not a public calamity.' In contrast, Chamber President Julián López supported the measure to protect the vulnerable. Opponents like Sergio Fajardo called it 'improvisation and chaos,' and Claudia López an 'abuse of power.'
This emergency tests Colombia's institutional balances, heightening tensions among branches of government.
