Colombia Sees Narrower Fiscal Deficit With Soaring Tax Revenues

Colombia’s budget deficit is set to narrow this year and in 2027, according to latest finance ministry forecast. However, those projections assume the approval of a tax bill raising a significant chunk of additional revenue.

The gap will end 2026 at the equivalent of 5.3% of gross domestic product, and 4.5% next year, Finance Minister Germán Ávilasaid Friday, presenting the government’s fiscal plan in Bogotá. in its fiscal plan published Friday. That’s down from 6.4% last year.

The targets assume that the next government manages to raise 30 trillion pesos ($8.6 trillion) in additional tax revenue, according to Cristian ...