The Congress of Guatemala has begun analyzing the 2027 budget, facing strong criticism for the growing fiscal deficit and increasing debt. The proposal raises the budget ceiling to 192.451 billion quetzals, equivalent to approximately 25.170 billion dollars, with significantly expanded financing needs for the State anticipated.
During the first round of analysis, a crucial piece of information was presented: projected revenues for 2027 total 137.860 billion quetzals, while total spending would reach 186.161 billion, resulting in a deficit of 48.300 billion quetzals, equivalent to 4.4% of the gross domestic product. This deficit is planned to be covered through 2.869 billion quetzals in external credits, 42.750 billion through subsidized debt, and 8.565 billion via cash variations.
The Deputy Minister of Finance highlighted that the current deficit for 2026 is 38.297 billion quetzals, corresponding to 3.5% of GDP. If approved in its current form, the 2027 budget proposal could drive the deficit to over 100.000 billion quetzals. Criticism from the VOS party focused on the trajectory of borrowing under President Bernardo Arévalo’s administration, noting that debt negotiations from 2024 to 2027 could reach 100.540 billion quetzals.
Reasons cited for the increase in the deficit include already acquired obligations, such as 3.511.6 billion quetzals for the Directorate of Priority Road Projects and the Social Housing Fund, along with other amounts dedicated to the National Infrastructure Agency and the Supreme Electoral Tribunal, linked to the electoral process. Additionally, 4.800 billion quetzals is earmarked for the expansion of Quetzal Port.
The budget analysis also revealed that 67.1% would be allocated to operational costs, 20.09% to investment, and 12.8% to public debt service. Despite the Ministry of Communications, Infrastructure and Housing having the lowest execution rate among ministries at only 35.4%, its budget would increase by 3.294 billion quetzals, bringing it close to 10.000 billion.
Furthermore, an increase for the Presidency of the Republic was proposed, raising its budget from 246 million quetzals to 272 million in 2027. The execution of the Minister of Defense for perimeter security would remain at 31 million. A deputy, José Chic, estimated that the total cost of maintaining the president amounts to 215 million quetzals, in a context where 3.5 million Guatemalans face food insecurity.
The proposal also includes the creation of the Development Guarantee Fund, aimed at expanding access to productive credit for Maya, Xinca, and Garifuna populations. On the other hand, a modification to the Guatecompras platform was discussed, removing personal data of users from the portal, which has sparked controversy.
Source: www.infobae.com
