Colombia Budget Boosts State Power, Cuts Peace Bodies

Colombia’s Congress approved a 634.9 trillion-peso budget for 2027, handing the De la Espriella administration its first major legislative victory even as it reduced funding for some institutions charged with carrying out the 2016 peace agreement. The plan assigns 74.9 trillion pesos to defense and 144 trillion pesos to debt servicing, while institutions searching for missing people and investigating crimes from the armed conflict face cuts.

The cost of the budget’s priorities

The Special Jurisdiction for Peace (JEP), which investigates and prosecutes the most serious crimes committed during the armed conflict, faces cuts, as does the Search Unit for Persons Presumed Missing (UBPD). Those reductions have prompted concern about the impact on judicial investigations, searches for missing people and the identification of victims, including in international proceedings.

The peace agreement dates to 2016. Earlier in October, the United Nations urged Colombia to uphold its commitments under the accord. The budget debate therefore puts state spending priorities beside the work of institutions seeking accountability and trying to find people who remain missing.

The Historic Pact, former President Gustavo Petro’s political movement and the main opposition force, criticized cuts to education programs and public institutions, including the National Learning Service (SENA). SENA offers free technical training across the country. The final distribution also covers subsidies, investment and the operating expenses of various institutions. The report describes it as an effort to reconcile executive priorities with legal obligations and spending commitments.

Debt and defense take large shares

Education receives 93 trillion pesos, about US$29.5 billion, while health care gets 81.6 trillion pesos, about US$26 billion. Defense receives 74.9 trillion pesos, about US$23.8 billion. The article says that allocation reflects the administration’s security priority and its focus on state operational capabilities in confronting illegal armed groups.

Debt servicing takes 144 trillion pesos, approximately US$45.7 billion. It exceeds the allocations for education and health care. The budget totals about US$201.1 billion, up from the 555.8 trillion pesos, approximately US$176.5 billion, allocated for 2026. It also tops by more than 10% the proposal submitted by former President Gustavo Petro’s administration, despite the new government’s pledge to reduce state spending.

The Senate passed the bill late Monday night, with 57 votes in favor and two against. In the early hours of Tuesday, the House of Representatives approved it with 112 votes in favor and one against. Both chambers passed matching versions after an extensive day of debate marked by concern over the fiscal deficit and rising public debt. The legislative process is complete. Questions remain about who pays for the spending choices.

Austerity presented as the answer

The government estimates the 2027 fiscal deficit could reach 9.4% of gross domestic product. Public debt keeps rising, and Colombia needs to restore financial market confidence. The country lost its investment-grade credit rating in 2021, raising borrowing costs. The administration has announced a fiscal reform called the Rescue Law, intended to reduce the projected deficit, but the approved budget leaves questions about how it will fund its priorities without increasing indebtedness or shifting adjustment costs onto public services and social programs.

Finance Minister Miguel Gomez defended the bill and thanked lawmakers for their support. “The budget recognizes the revenue the country can collect and incorporates cuts to address the fiscal imbalance. Debt absorbs resources that are needed for investment: correcting course requires austerity and greater efficiency in public spending,” he told lawmakers as he urged them to vote in favor. Congress delivered the votes. The budget now sets the terms for services, debt payments and the institutions left to carry out the peace agreement.