Distribution of the PGN in 2025 would concentrate more on debt and less on investment

At the beginning of April, the Ministry of Finance presented to Congress the preliminary draft of the General Budget of the Nation (PGN) for 2025in order to begin discussions around this document prior to the filing of the official initiative.

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The proposal contemplates a figure of $528.6 billion in expenses and the distribution would be as follows: $326 billion would be allocated to operation, which represents 62% of the resources; $128.7 billion for debt service, that is, 24%, and $74 billion would be available for investment, approximately 14%.

When making the comparison with the structure of this year's PGN, a drop is observed in the budget allocated to investment. To be more precise, in 2024 the money allocated to boost State investments amounts to $105.8 billion, in other words, The amount proposed for this item was reduced by nearly 30%.

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On the other hand, spending on public debt will increase by 28%, going from $100.3 to $128.7 billion. According to the Fiscal Observatory of the Javeriana University, This translates to that for every $100 that the State will spend next year$24 will go towards debt payment.

As for the resources that would go to the operating area, this remains unchanged compared to this year's Budget.

It should be remembered that the preliminary draft could present some changes between now and the filing of the final proposal at the end of July. In that sense, the Treasury portfolio has emphasized that “The data presented are preliminary. These preliminary projects serve as the basis for the preparation of the PGN 2025, but must be adjusted on the occasion of the presentation to the Congress of the Republic of the Medium-Term Fiscal Framework 2024.

In that order of ideas, the most significant adjustments would come with the publication of the Medium-Term Fiscal Framework (MFMP) in mid-June and the Annual Operational Investment Plan (POAI).

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