Less than 15 days have passed since last September 25, 2024, when Congress did not approve the General Budget of the Nation (PGN) 2025 and there is still debate about what will happen to the country’s finances for next year.
(See: Uncertainty and fall in Ecopetrol income are hitting the country risk premium).
For many, The Legislature has until October 20 to approve the amount proposed by the National Government, which is 523 billion pesos (11.8 billion of that total would come from a financing law that must be debated in Congress). For the Executive, however, it is clear that the PGN will go by decree and with the figure that was initially proposed.
That’s what he told him the Minister of Finance, Ricardo Bonilla, to the newspaper ‘Financial Times’: “The rule is clear: if Congress does not make a decision (and there was no debate), then the Government can approve the amount of the Budget by decree“.
“The rule says that the Budget is a Government initiative and, therefore, it is the Government that has all the power to make decisions. However, there is nothing extraordinary about this nor is it some kind of fiscal dictatorship, as they have said.“he added.
(See: Petro pointed out that if the tax bill is not approved, subsidies to rich sectors will be cut).
Bonilla pointed to Congress and accused it of not wanting to negotiate to reach agreements: “This time the problem is that Congress did not want to negotiate“.
Ricardo Bonilla.
And also denied that with the amount of 523 billion pesos (which has been highly criticized, according to the opposition, for the lack of clarity regarding the 11.8 billion that would come in through the financing law) The Government seeks to influence the 2026 presidential elections, although he acknowledged that the entire Budget “has political components“.
Also consulted by the ‘Financial Times’ on the matter, former Minister of Finance Mauricio Cárdenas assured that The work of the Petro government with Congress to carry out the Budget was a ‘failure’: “It shows weakness and that Petro is not willing to give in“.
(See: Budget 2025: Government says that the amount would come out by decree and would be $523 billion).
Mauricio Cardenas.
Although many experts defend that the Budget can still be approved in Congress until October 20, Bonilla sees it as impossible, so the The Government could issue, between October 21 and December 30, 2024, the PGN by decree.
And asked about the possibility of this Budget decree being sued in the Constitutional Court, the Minhacienda acknowledged that there is a good chance of that happening, but asserted that the Court already “He has failed in the past to be able to decree the PGN by decree and I do not think he will change his opinion“.
(See: What Petro said about the lack of agreement regarding the amount of the 2025 Budget).
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