Colombian Congress Rejects 2025 Budget Amid Tax Revenue Concerns

Colombia's Congress has rejected the government's proposed 2025 budget, citing concerns over the country's ability to raise the required funds due to lower-than-anticipated tax revenue. The budget, totaling 523 trillion pesos, faced opposition from economic committees in both houses, despite efforts to introduce additional fiscal reforms.

Economic committees from both houses of Colombia's Congress have unanimously rejected the government's proposed 2025 budget. Lawmakers raised concerns that the Andean nation will be unable to gather the projected funds amid lower-than-expected tax revenue.

In late July, Colombia's finance ministry submitted a 523 trillion pesos ($122 billion) budget to Congress for the upcoming year. Despite this, the budget was turned down after a new fiscal reform proposal to raise an additional 12 trillion pesos ($2.8 billion) was introduced on Tuesday. The government had argued the extra funds would support the budget.

A majority of lawmakers, primarily those on the Senate and lower house economic committees, dismissed the budget, deeming efforts to curb tax evasion and avoidance as unrealistic. President Gustavo Petro stated that he would approve the budget by decree if Congress continued to reject it.

($1 = 4,285.61 Colombian pesos)

(With inputs from agencies.)