Petro government's PGN execution lowest in 20 years

With 200 days left in Gustavo Petro's government, the Presupuesto General de la Nación (PGN) execution shows the lowest rates in two decades. As of November 2025, the average execution stands at 72.9%, below the century average of 74.9%. Sectors like health and education lead, while transportation and the presidency lag behind.

January 20, 2026, not only marks the first year of Donald Trump's government in the United States but also the final 200 days of Gustavo Petro's term in Colombia. This period has been characterized by the failure of two tax reforms in 2024 and 2025, aimed at financing 12 and 16.3 trillion pesos of the PGN, respectively.

According to Ministry of Finance data as of November 2025, PGN execution reaches 74.2%, a 6.1 percentage point increase from 2024, but still below the historical average of this century at 74.9%. The average during Petro's government, based on data up to November, is 72.9%, with annual executions of 76.4% in 2023, 68.1% in 2024, and 74.2% in 2025. In comparison, Juan Manuel Santos's second term had the highest average in 20 years at 79.5%, followed by his first term and Álvaro Uribe Vélez's second term, both at 74.6% excluding debt service.

Of the 32 sectors allocated PGN resources, only 25% exceeded the national average execution. Health led with 87.6%, followed by education at 87.5% and the Integral System of Truth, Justice, and No Repetition (JEP) at 79.6%. Other strong performers include the Attorney General's Office at 78.6%, Defense and Police at 78.3%, Equality and Equity at 77.8%, Labor at 75.9%, and Control Bodies at 73%. At the lower end, Transportation recorded just 30.8%, the Presidency of the Republic 34.3%, and the National Registry 43.6%.

For the 2025 PGN, with appropriations of 526.7 trillion pesos, 448.1 trillion (85.1%) were committed, 407.8 trillion (77.4%) obligated, and 403.7 trillion (76.6%) paid. Functioning expenses reached 80.2%, debt service 89.2%, and investment only 51.0%. These figures highlight implementation challenges during Petro's administration.

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Colombian Finance Minister announces economic emergency decree with new taxes, as business leaders express skepticism.
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Colombian government plans to declare economic emergency to raise $16 trillion

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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.

The Ministry of Finance reported that Education, Health, and Science, Technology and Innovation sectors closed 2025 with the highest budget execution rates, reaching 97.3%, 96.1%, and 95.4% respectively. In contrast, Presidency, Transport, and Agriculture had the lowest, at 40.9%, 43.5%, and 59.5%. The overall average without debt was 86.5%.

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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.

The Senate's Finance Committee started reviewing the public sector readjustment bill, presented by Finance Minister Nicolás Grau. Deputies approved a 3.4% gradual salary increase but rejected the 'tie-breaker norm' aimed at greater job stability. Opposition anticipates rejecting that provision again in the Senate.

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The Sixth Ordinary Session of the National Assembly of People's Power, held on December 18, 2025, in Havana, approved the economic plan, budget, and a government program to correct distortions amid a structural crisis worsened by the US blockade. President Miguel Díaz-Canel stressed the need for structural and mental transformations to overcome challenges, as ministers reported failures in tourism, sugar, and energy sectors. A modest 1% GDP growth is projected for 2026, despite prior contractions.

President Ferdinand Marcos Jr. signed the P6.793-trillion national budget for 2026 on January 5, allocating a record P1.015 trillion to the Department of Education and P530.9 billion to the DPWH. He vetoed P92.5 billion in unprogrammed appropriations, leaving P150.9 billion, while vowing prudent spending to curb corruption. The budget bars political involvement in aid distribution, though critics question the remaining funds.

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President Gustavo Petro insisted that the downfall of the economic emergency decree in the Constitutional Court will bankrupt the Colombian state, with about 4 trillion pesos missing from the budget. He criticized the previous government for handing billions of public funds to the country's richest without return. He also anticipated a fruitful meeting with Donald Trump in Washington.

 

 

 

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