Luis Carlos Reyes calls for surgical fiscal cuts in Colombia

Former DIAN director and presidential precandidate Luis Carlos Reyes criticized Colombia's fiscal crisis and proposed precise state spending reductions, targeting contraband and illicit economies. In an interview with LA NACIÓN, he emphasized applying existing regulations instead of new taxes. He also questioned the 'Total Peace' policy and called for bolstering security and political transparency ahead of the 2026 elections.

Luis Carlos Reyes, former DIAN director and Commerce Minister under Gustavo Petro's government, shared his views on Colombia's challenges in an interview with LA NACIÓN. As a presidential precandidate for 2026, Reyes acknowledged the need for fiscal adjustment but insisted it should be 'with a scalpel' to avoid harming essential social spending. 'The fiscal adjustment requires a cut with a scalpel,' he stated, proposing to eliminate state redundancies and prioritize efficiency.

On the fiscal crisis, Reyes noted that in 2023, during his DIAN tenure, the highest tax collection in history was achieved, but expenses grew faster. He criticized the Finance Ministry for inflating revenue projections to justify budget increases. He recommended submitting a programmatic and regionalized budget to Congress with greater transparency to prevent corrupt diversions. Instead of new taxes via economic emergency, he urged enforcing existing rules and pursuing evaders and smugglers, who cause losses of up to 6 GDP points.

Regarding security, Reyes advocated strengthening the Armed Forces with equipment, air support, and logistics, alongside robust intelligence. He emphasized gaining population trust in excluded regions by delivering state services to counter armed groups. He deemed 'Total Peace' a failure for treating criminals as political actors, leading to an explosion of illegal groups in areas like Huila. 'We have to abandon the idea that we negotiate with criminals,' he said.

On the 2026 elections, Reyes viewed current options as unsatisfactory: candidates seeking to reverse post-2022 changes and the official candidacy lacking self-criticism for concessions to corrupt figures. He proposed 'fair play' as the core of his campaign, based on transparency and honesty. On polls favoring Iván Cepeda and Abelardo De la Espriella, he considered it premature and stressed the need for proposals reflecting citizens' desires. To Huilenses, he sent a message of building trust through commitment to fair play, transforming institutions.

Связанные статьи

Realistic illustration of Colombia's 2025 economic and social challenges contrasted with hopeful renewal, featuring worried citizens, symbolic decay, and community unity.
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Year-end reflections on Colombia's challenges in 2025

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At the close of 2025, Colombian columnists highlight distrust, governmental ineffectiveness, and an economic crisis worsened by debts and taxes as the main threats to the country. While criticizing official lies and poor fiscal management, they call for building trust, social commitment, and education for a hopeful future.

Colombia's Finance Minister Germán Ávila defended the Economic and Social Emergency, stating that without it the state couldn't meet fundamental obligations. He assured that the measures won't affect the family basket or vulnerable sectors. Funds will go toward health, security, and key subsidies.

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Former Justice Minister Wilson Ruiz Orejuela announced his Senate candidacy with the Salvación Nacional party and his support for presidential precandidate Abelardo De la Espriella. Ruiz, who has criticized Colombia's institutional crisis, stresses the need to unite the right to defend democracy and institutions. His decision stems from a diagnosis of eroding trust in the state under the current government.

Building on the December 22 cabinet meeting at Olivos where these were prioritized, Javier Milei's government secures approval of the 2026 Budget and enacts the Fiscal Innocence Law. These milestones ensure fiscal discipline amid IMF demands but face criticism over impacts on vulnerable groups like the disabled and public workers. Analysts hail macroeconomic gains while cautioning on social costs for 2026.

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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.

Following the December 19 announcement of plans for an economic emergency decree, the Colombian government of Gustavo Petro on December 31 issued the tax package via Decree 1390, targeting 11 trillion pesos to address a 16.3 trillion fiscal deficit after Congress rejected reforms. Finance Minister Germán Ávila noted it covers much but not all 2026 needs, impacting liquor, cigarettes, patrimony, finance, and imports.

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The Colombian government, led by President Gustavo Petro, announced legal actions against 17 governors refusing to apply the economic emergency decree, as the Constitutional Court reviews its legality. This clash creates uncertainty over collected taxes, such as the 19% VAT on liquors, and potential refunds if the measure is ruled unconstitutional. Experts warn that criminal penalties are unlikely and highlight the complexity of reimbursements.

 

 

 

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