The Minister of Finance, Germán Ávila, announced this Friday, December 19, that the National Government has ready an economic emergency decree in the face of the collapse of the tax reform that sought to raise $16.3 billion pesos for the 2026 General Budget of the Nation.
“We are finalizing an alternative declaration of economic emergency with which we intend to balance these resources through different measures”said the head of the portfolio at a press conference.
Ávila pointed out that they hope to announce the measure and issue the complementary decrees next week, with which they will establish new tax measures to recover the amount defunded by Congress.
“We are hoping to guarantee the recovery of the resources that Congress left defunded from the National Budget. This forces the Government to take measures to recover the necessary income that balances the budget approved by Congress itself”stated the official.
The minister justified the economic emergency by pointing out that it is an unprecedented situation in the last 30 years: “In no case has Congress approved a budget associated with a financing law as one of the sources of financing and two months later the same Congress denies the law”he denounced.
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“It is a kind of trap that Congress plays. It approves a budget that assumes spending levels and commitments that must be assumed to meet social and economic goals and then withdraws part of the resources”Ávila added.
The official detailed several supervening events that would justify the declaration of economic emergency
Crisis in the health sector: Ávila highlighted the financial crisis that the health sector is experiencing and the risk of non-payment that could exist in subsidies for strata 1, 2 and 3.
Energy subsidies at risk: “Energy subsidy payments are at risk. This would have a very high impact on the Atlantic Coast,” The minister warned about Caribbean households that are especially vulnerable.
Future validity: The minister expressed special concern about guaranteeing compliance with future regulations.
“We have a constitutional obligation to meet the commitments of future periods of previous governments. Annually, we have to respond by paying these commitments for nearly $15 billion pesos, an item that must be incorporated into the investment budget”held.
Court rulings: Ávila pointed out that the payment of judicial sentences that the State must comply with is also at risk.
National security: The minister linked the emergency to the deterioration of the public order situation.
“Recently, we have had attacks on the Public Force in departments such as Cesar or Cauca and armed organizations are using drone technology systems with which they are affecting the infrastructure”he declared.
According to Ávila, the emergency declaration seeks to protect fundamental rights and guarantee transfers to the most vulnerable population, comply with future terms, strengthen the capabilities of the Military Forces and ensure electricity subsidies.
The collapse of the tax reform represents a hard blow to the finances of Gustavo Petro’s Government, which will now have to appeal to the constitutional figure of economic emergency to try to recover the resources that it considered essential for the operation of the State in 2026.
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