Colombia Cuts 2024 Budget by 5.6% Amid Growing Fiscal Concerns
- Finance ministry says drop in tax revenue motivated decision
- Damaged caused by flooding prevented higher reductions
Colombia’s dollar bonds rose to session highs following the news, with notes maturing in 2053 trading at the highest levels in a month.
Photographer: Nathalia Angarita/BloombergThis article is for subscribers only.
Colombia’s government said it would cut the 2024 budget by 5.6% in an effort to comply with spending limits amid lower-than-expected tax revenue.
President Gustavo Petro’s administration announced it was slashing spending this year by 28.4 trillion pesos, or $6.4 billion, due to a drop in tax revenue. In a statement, the Finance Ministry said the move represented the government’s commitment to spending limits, know as the fiscal rule, which is estimated to reach 5.6% of gross domestic product this year.