In the midst of growing tension over the management of public finances, President Petro announced that his administration will apply a new budget cut of $16 billion pesos.
With this adjustment, the Government adds a total of $44 billion in cuts during its mandate, a drastic measure that seeks to curb the deficit after the suspension of the economic emergency by the Constitutional Court.
The president assured that this third “snip” is a necessary response to the crisis, although he launched strong attacks against those who criticize his spending management.
The announcement became a scene of direct confrontation with his former Minister of Finance, José Antonio Ocampo. While Ocampo maintains that the current crisis is due to the Government’s refusal to make deep adjustments and poor planning, Petro responded sharply by pointing out that the responsibility lies with decisions of past administrations.
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According to the head of state, the imbalance has its origin in the gasoline subsidy inherited from the government of Iván Duque, which he valued at $70 billion, and in short-term debt payments with the IMF for another $16 billion.
“An economist must tell the truth; another cut of $16 billion will come”the president declared to mitigate the recession.
The situation is aggravated by the recent ruling of the Constitutional Court, which stopped the economic emergency based on legal criteria to avoid irreversible effects on the Constitution.
Judge Carlos Camargo explained that this is a precautionary measure and not a definitive ruling, but Petro did not hide his discomfort, also questioning the Court for allowing the deductibility of royalties to oil and coal companies.
The president insists that these judicial decisions and the economic policy of traditional sectors are pushing the country towards a recession that his government is trying to avoid by prioritizing social spending.
Finally, Petro warned that the cuts will not affect public investment or security, but made it clear that the path to overcoming this fiscal crisis could require substantive political decisions.
In his account of X, the president even mentioned the need for a Constituent Assembly to protect fundamental rights, suggesting that the current structure of Congress and the courts limits his ability to maneuver.
An economist must tell the truth.
We have made cuts twice: one for 12 billion and another for 16.
Another one will come for 16.
These cuts add up to 44 billion current government pesos. Of course they could have been money for the benefit of the people, but I was wrong in the… https://t.co/BdyOiH2lss
— Gustavo Petro (@petrogustavo) January 31, 2026
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