The government is considering tax reform to raise COP 26 trillion for its 2026 budget.
Colombia’s government is considering a tax reform proposal aimed at generating COP 26 trillion, primarily through tax increases, to support the 2026 budget.
This move comes after a drop in tax revenues, which has weakened public finances and forced the government to suspend the country’s fiscal rule.
The Finance Ministry raised the 2025 fiscal deficit target to 7.1% of GDP from the previous 5.1%, while projecting a 6.2% deficit for 2026.
Finance Minister Ricardo Bonilla Avila presented preliminary figures showing the government will propose a 2026 spending budget of COP 551.66 trillion, a 7.9% increase over the 511 trillion pesos allocated for 2025.
