The Coordinating Committee of Agricultural, Commercial, Industrial and Financial Associations (CACIF) publicly requested the Government to expedite budget execution and promote legal reforms, as well as the creation of new laws to modernize the macrosystem of hiring and acquisitions that it considers obsolete.
He also requested fiscal prudence for the 2026 budget, due to the high debt amounts approved for the current year. In addition, a portfolio of at least eight loans for US $ 1,382.2 million with entities such as the World Bank and the Inter -American Development Bank (IDB) is studied.
The budget in force to April 30 is Q154 thousand 836.6 million, of which 26.53%have been executed, according to the Sicoin.
The Cacif said that it is the largest budget in history and that there is availability of resources, but worries the low level of execution, especially in infrastructure and road maintenance.
“The infrastructure is important for the business climate and constitutes the main bottleneck for investment in the country, which has not favored the arrival of more capital or economic development,” said Charles Bland, president of the CACIF.
Sigfrido Lee, director of the Economic Unit of the CACIF, explained that the low execution of the expense worries, especially in capital expenses, which at the end of the first four -month period barely reached 30% of the goal.
He indicated that the total execution was 27%, mainly influenced by current expenditure, which stood at 29%, while capital or investment expenditure only reached 20%.
By excluding the items destined for the obligations of the State in charge of the Treasury (transfers to other agencies and institutions) and the debt execution was 28%, but the investment barely reached 10%.
By entity, Lee indicated that capital investment is behind in all ministries, especially in communications, infrastructure and housing (CIV), which executed only 16% (22% in operation and 13% in investment).
The Ministry of Environment stood at 14% and agriculture by 13%; Both executed only 5% in investment and 15% in operation.
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The CIV and the Executing Unit for Road Conservation (COVIAL) have a significant lag in the execution of road maintenance works, just at the beginning of the rainy season, which could aggravate the situation on strategic routes of the country. In addition, development tips still show low execution, without correlation with poverty indicators.
The managers explained that new roads are not being built and that the existing ones will deteriorate further due to the lack of maintenance, due to the lag in the hiring of works.
According to figures cited by Lee, the General Directorate of Roads executed 48% in operating expenses and 20% in investment, for an average of 27%. Covial, on the other hand, executed only 14%, which corresponds to operation, while in investment it was 0%.
Retrieved the Ministry of Finance, through the Social Communication Office it was indicated that on Monday the information on the budget execution will be announced.
Also in the Codedes
Development Councils (CODEDES) also show low execution. Lee explained that the execution capacity of these entities is questioned against budgeted amounts. Of the Q12 thousand 269.7 million assigned this year, only 8.4%has been executed.
He added that the executed is not related to the poverty indicators, since the departments with higher levels of poverty receive fewer funds, and are also the ones that execute the least. Therefore, he asked to establish clear assignment criteria for COCODES.
Cacif presented the public budget execution data up to April2025. The results show low execution, especially in key areas such as road maintenance and investment in productive infrastructure. pic.twitter.com/Eppajfafpp
– Cacif (@cacifguatemala) May 22, 2025
Debt
Another criticized item was the public debt. According to Lee, the balance increased Q10 thousand 462.2 million to April 30. Internal debt was approved for this year for Q25 thousand 104.2 million and loans for Q2 thousand 406 million, with amortizations for Q3 thousand 683.4 million. The pending balance amounts to Q123 thousand 365.8 million.
Lee considered that high savings balances of the public sector persist, which reach Q21 thousand 083.6 million, which denotes a lack of execution.
They request actions
Therefore, the CACIF requests to expedite the execution of public spending in strategic areas, such as road maintenance and investment in productive infrastructure.
However, he pointed out that the acquisition and hiring system is obsolete and must be modernized to make processes more efficient and have the right personnel.
The Cacif urges the executive and legislative agencies to take actions, such as:
- Strengthen the execution of road maintenance immediately.
- Efficiency prepare the maintenance plan for 2026.
- Reform the State Hiring Law to provide it with agility and transparency.
- Efficiently implement the priority road infrastructure law.
- Promote reforms to the Law of Alliances for Development.
- Reform the Civil Service Law.