At the end of 2024, the national government of Colombia officially presented Decree 1621, which liquidates the General Budget of the Nation (PGN) for the fiscal period of 2025. This decision comes a few days after the collapse of the tax reform in the Congress, which sought to raise almost 12 billion pesos, a situation that generated uncertainty about the sources of financing the State’s commitments for the following year.
The budget, approved for a total sum of 511 billion pesos, is designed to cover operating, investment and public debt service expenses. The budget distribution is based on principles of efficiency and speed, in accordance with article 209 of the Political Constitution. According to the aforementioned decree, the Government sought to guarantee the adequate execution of resources despite the challenges posed by the absence of new tax revenues.
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The budget for 2025 is divided into three large items: operation, which covers the government’s administrative costs, such as salaries and operating expenses of state entities; investment, destined for social development projects, infrastructure, education, health and other priority areas; and debt service, which allocates resources to meet the financial obligations acquired by the Nation.
The PGN for 2025 contemplates a total of 511,007 billion pesos in income and capital resources. Within this figure, the following items stand out:
- Current Income of the Nation: 305.7 billion pesos.
- Capital Resources: 155.7 billion pesos.
- Special Funds: 18.1 billion pesos.
The decree also includes a specific investment component that amounts to 523 billion pesos, an additional effort to prioritize strategic projects in sectors such as infrastructure, education and health.
The budget allocates significant resources to key areas, including:
- National defense: With a total allocation of 24.8 billion pesos, this sector receives funds to guarantee security in the territory and strengthen the operational capabilities of the military forces.
- Education: Through organizations such as the National Learning Service (Sena), more than 417,000 million will be allocated to improve educational quality and strengthen technical and professional training.
- Infrastructure: More than 2.3 trillion pesos are directed to public transportation and road infrastructure projects, seeking to promote mobility and economic development.
- Congress of the Republic: receives $1.3 billion, distributed between operation ($1.1 billion) and investment ($200,000 million).
- Presidency of the Republic: $621.5 billion is allocated, including initiatives related to peace, administrative modernization and strategic coordination.
- Ministry of National Defense: It is one of the sectors with the largest budget, with $24.8 billion for operation, investment and debt service.
- Ministry of Justice and Law: receives $237 billion to promote access to justice, conflict resolution methods and transitional justice.
- Education: includes funds for institutions such as the Higher School of Public Administration (Esap), with $417,000 million destined to strengthen educational quality.
- Health and well-being: The National Penitentiary and Prison Institute (Inpec) receives $2.1 billion for operation and investment.
- Infrastructure and transportation: Through entities such as the Ministry of Transportation, significant resources are allocated for road and rail infrastructure projects.
Additional spending in the 2025 budget includes specific allocations for several key areas. Among these, presidential agencies, such as the Agency for Reincorporation and Normalization (ARN), which has $91 billion destined to facilitate the reintegration of people and groups who have taken up arms. Likewise, territorial support is contemplated through the Territory Renewal Agency (ART), which will receive resources to promote the comprehensive development of rural areas affected by the armed conflict.
Finally, in justice and security, funds were allocated to strengthen criminal policies and improve penitentiary systems, ensuring compliance with human rights and efficiency in these sectors.
With the fall of the tax reform, budget financing falls mainly on existing revenues and fiscal policy adjustments. The Minister of Finance highlighted that, although the budget does not have new sources of income, austerity and administrative efficiency strategies will allow fiscal balance to be maintained.
The budget allocation also includes a significant sum for servicing the public debt, which exceeds 109 trillion pesos, which represents a considerable burden on national finances.
