[Economy] Colombia: spending budget of US $ 93,000 million approved for 2022, the highest in the history of the country

[Akrapovic]

The Colombian Congress approved this Wednesday the spending budget for 2022, of 350.4 trillion pesos (US $ 93,019 million), with which the Government will seek to boost the reactivation of the economy after the negative impact caused by the COVID pandemic -19.

 

 

The amount approved by legislators represents an increase of 5.3% compared to the one in force this year, making it the highest in the history of the South American country.

The bill counted in the Senate with 68 votes in favor and 9 against, while in the House 117 legislators supported it, while 18 rejected it.

The Government will allocate 209.1 trillion pesos (US $ 55,397 million) to operating expenses, 2.6% higher than the current one; as well as 69.6 trillion pesos (US $ 18,440 million) for social investment, 18.8% higher than the current validity.

"The objective is to improve the quality of life of people living in poverty, extreme poverty and in a condition of economic vulnerability due to the effects of the Covid-19 pandemic," said the Minister of Finance, José Manuel Restrepo, before the congressmen .

To service the debt, 71.6 trillion pesos (US $ 18,969 million) will be allocated, 1.6% more than that assigned for this year.

The Ministry of Finance projects that the Colombian economy will expand 4.3% in 2022, below the target of 6% this year and which aims to be higher in the opinion of analysts and the Central Bank.

The crisis caused by the impact of the coronavirus pandemic led the country to raise its level of indebtedness, which triggered the fiscal deficit target to 8.6% for this year, which would yield moderately to 7% in 2022.

The sectors that will have the highest allocation of resources in the budget are education with 49.4 billion pesos (US $ 13,087 million), defense with 42.6 billion pesos, and health with 41.8 billion pesos (US $ 11,074 million). ).

Precisely, the Government will allocate for the payment of pensions next year a total of 50.4 billion pesos (US $ 13.352 million), 16.1% higher than the resources allocated in the 2021 budget.

The project will allow the awarding of works in the regions during the electoral period next year, which, according to the Government, seeks to promote economic reactivation, despite the rejection of the opposition, which denounces a violation of a guarantee law with which influencing people's vote via public procurement was avoided.

Next year the country will have elections to Congress and to the presidency.

Last month, Congress approved a tax reform that guarantees the Government an additional collection of 15.2 trillion pesos (US $ 4,035 million), to cover financing needs.

 

LINK: https://www.cesla.com/detalle-noticias-de-colombia.php?Id=25683