This Wednesday, the Government presented the preliminary budget ceiling for 2027, which amounts to Q181,563 million, equivalent to 16.6% of the gross domestic product (GDP). The proposal prioritizes investment in infrastructure, citizen security and social development, while projecting economic growth of 4% and ruling out the creation of new taxes.
The Minister of Public Finance, Jonathan Menkos, explained that planning seeks to maintain sustainable public finances through an increase in income greater than the growth of spending. The proposal foresees that total income will increase 8.7%, driven mainly by a 9.9% increase in tax collection, while spending would grow 8% compared to the current budget.
The official added that financing through bonds, credits and other sources would increase 5.5%, while the fiscal deficit is projected at 3.7% of GDP, below the 3.8% expected for this year. In addition, he indicated that the balance of public debt would close in 2027 at 27.9% of GDP.
Investment in strategic projects
An important part of the budget corresponds to extraordinary investments equivalent to 1.8% of GDP to execute projects considered strategic for the development of the country.
Among them, Q4.8 billion stands out for the second phase of modernization of Puerto Quetzal; Q3,517 million for priority road projects; Q1,200 million for the support fund for the first home, and around Q8,700 million for the fulfillment of presidential goals.
The project also incorporates resources for a technological innovation fund, the modernization of metropolitan transportation, ports, airports and the railway system, with the aim of expanding public investment and improving the provision of state services, Menkos indicated.
Regarding the distribution of spending, the Ministry of Education would concentrate the largest budget allocation, followed by the Ministry of Public Health and Social Assistance and the Ministry of the Interior, responsible for citizen security.
“There will be no new taxes”
Menkos assured that the expected increase in income will come from greater productivity and the strengthening of actions to combat tax evasion, without the need to create new taxes.
“Guatemala’s public budget continues to be the smallest in Central America and one of the smallest in the world, but we are making the best use of it,” said the minister.
He also maintained that the Government maintains a “strategic, rational use with clear development and well-being objectives” of public debt.
Arévalo highlights transparency
During the presentation, President Bernardo Arévalo stated that the budget must be understood as a tool at the service of the population and stressed that the process be disclosed before its official presentation to Congress.
“The State budgets do not belong to the Government; they belong to the nation, they belong to the people,” said the president, who assured that the administration seeks to transform public resources into development opportunities through transparent and efficient management.
Menkos added that presenting the budget ceiling in advance allows different sectors to know and analyze the proposal before it is sent to Congress. The deadline to receive the draft General State Income and Expenditure Budget is September 2, in accordance with current legislation.