Spending Reduction: A Difficult Goal for the Petro Government's Financial Plan Accounts
The reduction of spending is an important necessity in public accounts. Photo: Image generated with artificial intelligence.
TL;DR
- The Financial Plan projects a fiscal deficit of 6.4% of GDP for 2025, a slight improvement from 2024's 6.7%.
- The primary deficit, excluding interest payments, increased to 3.5% of GDP in 2025 from 2.4% in 2024.
- Experts question the feasibility of revenue projections, noting that many were based on reforms that did not pass Congress.
- The plan suggests a reduction in the primary deficit to 2.1% of GDP by 2026, but analysts deem this adjustment optimistic and only the start of a long fiscal consolidation process.
- Risks to the plan include potential new economic emergencies and a recurring tendency to overestimate fiscal revenues.
- Analysts criticize the plan for lacking a clear strategy on how to reduce spending or improve revenue collection.