Colombia’s vice president, José Manuel Restrepo, said the country must carry out a fiscal adjustment of about 70 trillion pesos next year to address the deterioration of public finances and recover room for investment. He spoke at the Congreso Colombiano de la Construcción, an event organized by Camacol, in Cartagena.
“Para el próximo año tiene que implicar, por lo menos, UN rescate de cerca de 70 billones de pesos,” Restrepo said.
Debt doubled in four years
Restrepo said public debt stood at 800 trillion pesos four years ago and now exceeds 1,200 trillion pesos, an increase of 50 percent. He said debt servicing costs doubled between 2022 and 2025, while the primary deficit quadrupled over the same period.
He attributed the deterioration to decisions taken by the previous government. At its peak, he said, monthly government spending reached 40 trillion pesos while monthly income ranged between 19 trillion and 25 trillion pesos. He said the imbalance affects housing, since fiscal pressure on inflation limits financing available for construction.
Growth target and reconstruction
Restrepo pointed to a growth target of 6 percent. He also addressed reconstruction after the 10 August earthquake, saying announced resources, excluding insurance, amount to 1.7 trillion pesos.
The reconstruction cost estimate was revised from an initial 30 trillion pesos to 54 trillion pesos. Officials have identified 331 administrative obstacles in the construction sector’s chain and prioritized 86 projects for international financing. Sixteen affected departments are eligible for tax incentives tied to new investment, and a Milagro Week is scheduled in New York from 16 to 19 November.
