Budgetary Lag and Growing Spending: Two Factors Keeping the Government's Fiscal Crisis Risk Alive
The country faces a fiscal crisis not seen since the last century. Photo: Image generated with artificial intelligence.
TL;DR
- Public spending execution in the first quarter of 2026 shows a dynamic that does not align with the government's fiscal adjustment goals.
- A budget backlog of $48.3 trillion from 2025 is pressuring the government's finances, with $24.2 trillion already paid by March 2026.
- Rigid spending, particularly on functioning and debt service, limits the government's ability to adjust its budget.
- Investment spending remains low, exacerbated by the backlog from the previous year.
- Sectoral spending execution is uneven, with some sectors like Mining and Energy executing more than others like the Presidency.
- Despite a slight overall improvement compared to 2025, the execution is not homogeneous and is driven by specific sectors.