Colombia's Economic Rescue Bill Reaches Congress Amid Fiscal Crisis

The Colombian government presented its Economic Rescue Bill to Congress on Thursday, seeking to reduce public spending and find new revenue sources amid a tense fiscal situation. Vice President José Manuel Restrepo and Finance Minister Miguel Gómez filed the project before the Chamber of Representatives Secretariat.

Without the adjustment, the 2027 fiscal deficit would reach 9.4% of GDP, according to executive calculations. The Banco de la República has warned this would be the highest figure in the country's history, exceeding even the worst moment of the pandemic.

“No household, no company, no country can live indefinitely when its expenses are higher than its income.”

The state collects an average of COP 29 trillion per month but spends COP 40 trillion, leaving a monthly gap of nearly COP 11 trillion. The country's debt stands at COP 1.174 trillion, Gómez said during the 2027 budget debates.

Restrepo stated that 70% of the fiscal adjustment will come from greater efficiency in public spending and reduced state waste. The remaining burden will fall on "those who have the most."

The government also cited 18 national taxes and low collection, with the DIAN unable to stop tax evasion, a situation the minister called "fiscal fatigue." With the Rescue Law, the government says the total deficit would fall to 7.2% of GDP, a reduction of 2.2 percentage points.