The Ministry of Finance said that they will have to cut investment and operating budgets by 5.6%.

The Minister of Finance of Colombia, Ricardo Bonilla, stated that ministries and state entities will have to cut investment and operating budgets by 5.6%. The objective will be to freeze US$5,016 million in the budget.

“The entities were told that the cut corresponds to 5.6% of the investment and operating budgets financed with national resources. That is, the entity's own resources are left out,” said the portfolio manager.

At yesterday's meeting of the council of ministers, it was agreed that they must deliver the details of the cuts no later than tomorrow, Wednesday, June 12. This was stated by Bonilla before the joint Third Committees of the Senate and House of Representatives.

The debt quota

The Minhacienda gave the entities time to achieve the cut, while seeking to expand the debt quota to US$ 17.6 billion to comply with the payments of the debt acquired between 2019 and 2020.

Bonilla hopes that inflation will continue to decline, as evidenced by the trend for 14 continuous months, while the Fiscal Rule is guaranteed.

As for diesel, he says that it will be necessary to close the gap. For this, it will monitor inflation with the Bank of the Republic so that it does not skyrocket.