Colombia is on track for its largest budget deficit since the Covid-19 pandemic, financial analysts warned, BNN reported June 14.
Colombia’s government said it is targeting a deficit of 5.6% of gross domestic product in 2024, down from a previous target of 5.3%.
The peso and local currency bonds have fallen in recent days as investors shy away from the country’s assets amid concerns about a growing budget deficit.
The government will cut its 2024 budget by 20 trillion pesos ($5 billion), Finance Minister Ricardo Bonilla said. Bonilla reiterated his commitment to defending the fiscal rule, or balanced budget law, which sets limits on government borrowing.
President Gustavo Petro said any spending cuts would not affect his social programs.
Source: Rossa Primavera
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