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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Illustration of Argentine government building with fiscal surplus charts for a news article about economic surplus.
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Argentine government closes first half with fiscal surplus despite June deficit

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The National Public Sector recorded a primary surplus of 0.6% of GDP and a financial surplus of 0.1% between January and June 2026, the Economy Ministry reported.

The government of President Gustavo Petro submitted a new tax reform bill to Congress aimed at collecting 21.9 trillion pesos in 2027.

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Finance Minister Jorge Quiroz pointed to serious errors in the previous administration's calculations, raising the projected fiscal deficit for this year to 2.4 points of GDP.

Think tank Anif warned that the net debt of Colombia's National Central Government could exceed 71% of GDP in three years, a threshold incompatible with the fiscal rule. It identified public spending rigidity as Colombia's core fiscal issue. Current levels near 58% of GDP recall 19th-century crises.

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The Ministry of Finance released 2026 national budget execution data through May. Mines and Energy, Congress and Education posted the highest rates.

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