The Minister of Economy and Finance, Carlos Fernández Valdovinos, presented the national budget project for the year 2026 on Monday, with a total estimated amount in USS18. 900 million. This budget marks the return to the fiscal deficit limit of 1.5 % of GDP, in accordance with the Fiscal Responsibility Law, after seven years without complying with that standard.
The delivery was held at a meeting with the Senate Board of Directors, chaired by Senator Basilio Núñez. The minister made use of a QR code to deliver the budget text, thus reinforcing the commitment to digitalization and avoiding the use of paper in state procedures.
Fernández Valdovinos stressed that with this budget the schedule provided for in the Fiscal Convergence Plan initiated in 2023 is fulfilledwhose objective was to reach the deficit ceiling of 1.5 % by 2026. He said that returning to the legal limit demonstrates the country’s commitment to macroeconomic stability.
Regarding the composition of the budget, the amount represents an increase of 12 % compared to the previous year, that is, US $ 2,000 million. Priority attention was assigned to four key sectors: health, education, security and social protection. These resources will cover both the central government and the decentralized entities, also allocating funds for retirement, programs for older adults, and the “Zero Hunger” school food program.
In addition, the budget includes greater funds for the National Electricity Administration, as well as for the National Development Bank and the Financial Development Agency They can grant more credits to the productive sector. Support for governorates for the execution of social policies will also be reinforced.
Investments are expected to maintain levels similar to currentwhile the Ministry of Public Works and Communications will continue to receive support using additional resources from the agreement with Brazil on Itaipú.
The budget contemplates that 62 % of tax revenues are allocated to the payment of wages, reducing this proportion compared to 65.2 % in 2025, without affecting strategic sectors. An additional allocation of US $ 236 million for salary improvements in health, education and public force is estimated.
It is also planned to issue bonds for US $ 662 million and allocate additional US $ 25 million to the National Cancer Institute for the Purchase of Medicines. Finally, this budget contemplates that public transport subsidy is financed with treasury resources, avoiding public indebtedness, as the minister said. The project will now continue its course in Congress, through a bicameral commission for analysis before being discussed in plenaries of deputies and senators.
