The measure, made official through a decree, comes at a time when the South American country is experiencing fiscal difficulties due to tax collections that are below target, forcing the government to cut spending by around US$4.633 billion.

The Colombian government has increased the quota for issuing domestic public debt securities (TES) by 10 billion pesos (US$ 2.316 billion), intended to cover expenses this year, according to a decree from the Ministry of Finance.

The document, dated October 18, explains that the quota for issuing TES bonds has been increased from 63.7 billion pesos (US$ 14,756 million) to 73.7 billion pesos (US$ 17,073 million) "intended to finance appropriations of the nation's general budget for the fiscal year 2024."

TES are the second main source of internal financing of public spending, behind tax collection.

The decree did not specify how the titles would be placed.

The increase in the borrowing limit comes at a time when the South American country is experiencing fiscal difficulties due to tax collections that are below target, forcing the government to cut spending by some 20 billion pesos (US$ 4.633 billion).

In July, the independent Autonomous Committee on Fiscal Rules (CARF) warned that despite the announcement of spending cuts, Colombia may require additional adjustments to its accounts to comply with the fiscal rule in 2024 and 2025 and to stabilize its debt.

Meanwhile, the Colombian Congress rejected the government's 2025 budget proposal in September amid a heated controversy over the amount of the initiative, which will require President Gustavo Petro to set it by decree.

The government is currently processing a tax reform bill before Congress for some 12 billion pesos (US$2.779 billion) to secure the necessary resources to complete the financing of the budget.

But the initiative threatens to collapse due to a lack of support in the legislature, where Petro has lost the support needed to ensure its approval.