What the government has technically defined as the “postponement of expenses for the 2024 budget” has already been tied up via decree signed by the Minister of Finance, Ricardo Bonilla.
There are 20 billion pesos in cuts to all state entities, due to the imbalance in collection and failures in budget planning. That is equivalent to 20 percent of the total investment budget for 2024, which is around $100 billion, a historically high amount.
The decree signed on June 20 establishes the cut that all entities involved will suffer. They range from the Presidency of the Republic to the superintendencies.
Decree cuts 20 billion… by La Silla Vacía
Two great forces acted to hasten the decision. One, the anguish of the Ministry of Finance to “honest” the accounts and send a message of confidence to the international markets that finance the State. The other, the endorsement of President Petro, who understood the size of the problem and supported Minister Ricardo Bonilla to make the adjustment.
The Treasury does not rule out more budget cuts due to the size of the gap, which they describe as “huge.” And all the ministries are rushing to present the cutting plan that they must deliver to the Treasury.
