Contraloría warns February economic emergency lacks foundation

Colombia's Contraloría General de la República reported that Decree 0150 of 2026, declaring an economic emergency in February due to the climate crisis, lacks solid calculation bases for requesting between $8.26 and $8.68 trillion pesos. The oversight body identified discrepancies in damage estimates, such as flooded areas, and the absence of a national articulated plan. This review responds to a request from the Constitutional Court.

The Contraloría conducted a thorough review of the decree at the Constitutional Court's request and concluded there are no detailed bases for the global resource estimate. The National Unit for Disaster Risk Management (Ungrd) acknowledged its figures are dynamic and subject to field adjustments, preventing current auditing.

Key findings include, in Córdoba, Ungrd reporting 113,641 flooded hectares versus Contraloría's Diari estimating 66,276 hectares using Sentinel 1 radar images—a 47,365-hectare difference suggesting overestimation.

The report notes the lack of a unified national plan, only aggregated sectoral responses, and weaknesses such as no territorial prioritization, calculation duplications, and overlooked ordinary resources. In housing, the largest item at $4.45 trillion pesos requested, calculations differ by over $23.5 billion.

The Contraloría questioned not first using mechanisms from Law 1523 of 2012 and recommended a public policy for disaster risk financing, given low 2026 disaster budget programming. It issued no findings on mining, energy, and defense due to insufficient detailed information.

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Illustration of Colombian floods with government officials announcing emergency decrees for aid funding amid skeptical onlookers.
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Colombian government issues decrees to address flood emergency

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The Colombian government issued several decrees under the Economic, Social and Ecological Emergency declared due to floods in eight departments, including a 16% tax on digital bets and an $8.6 trillion addition to the 2026 budget. These measures aim to fund aid for victims and revive the local economy. Critics like Andi and AmCham question their impact on investment.

President Gustavo Petro declared an economic emergency to address the crisis from heavy rains in northern Colombia. The measure aims to raise $8 billion through a temporary wealth tax on large companies and other levies. Critics question the management of existing resources and warn of economic impacts.

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Finance Minister Germán Ávila announced the declaration of an economic emergency following the failure of the tax reform, aiming to fund $16 trillion for the 2026 National General Budget. The draft decree includes taxes on assets, alcohol, cigarettes, and a special levy on hydrocarbons and coal. Business guilds such as Andi, ACM, and ACP question its constitutionality and effectiveness.

Colombia's Constitutional Court provisionally suspended Decree 1390 of December 22, 2025, which declared an Economic and Social Emergency. President Gustavo Petro criticized the decision as a rupture of the constitutional order and stated that the cost of the debt will not fall on the working class. The government plans to present new tax laws to address the deficit.

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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.

The debate on Colombia's Financing Law in Congress was suspended until Tuesday due to lack of quorum in the Fourth Commission of the House of Representatives. The bill aims to raise $16.3 trillion to fund a 2026 budget of $546.9 trillion, but faces opposition and potential cuts if not approved. President Gustavo Petro warned of a possible default, while experts like Anif dismiss that risk.

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The Colombian government issued legislative decree 0044 on January 21, 2026, to ensure the continuity of electricity services amid an imminent crisis. The exceptional measures aim to bolster sector liquidity without impacting users or tariffs. Mines and Energy Minister Edwin Palma stressed the goal of preventing widespread blackouts in vulnerable areas like the Caribbean.

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