Economists Urge Honduras to Avoid Late Budget Execution

Economists in Honduras are sounding the alarm over a recurring and detrimental fiscal practice: the accelerated execution of the General Budget in the last quarter of the year. Amparo Canales, former president of the Honduran College of Economists, highlights that this 'end-of-year rush' is not merely an administrative inefficiency but a systemic issue that compromises the quality of public services and leads to irresponsible spending.

The core problem lies in the low budget execution throughout the first three quarters, forcing a hurried and often poorly planned disbursement of funds as the deadline approaches. This approach directly impacts critical sectors such as healthcare and citizen security, areas that require consistent and well-managed funding. The inability to address the population's needs effectively throughout the year due to this delayed spending pattern is a significant concern for the country's development and the well-being of its citizens.

“

This practice affects the quality of state services, as it implies low execution during most of the year, which then translates into irresponsible spending at the end of the year.

Furthermore, the article points to the detrimental effect of eliminating transparency secretariats. Such measures not only obscure accountability but also make it exceedingly difficult to assess the true impact and efficiency of public investments. When a substantial portion of the national budget – approximately 70% concentrated in just 12-13 institutions – is spent in such a manner, the lack of oversight becomes even more critical.

From a Honduran perspective, this issue transcends mere budgetary concerns; it speaks to the fundamental challenges of governance, accountability, and effective public administration. The approved budget for 2026, while increased, risks being spent in the same inefficient and potentially corrupt manner if these underlying issues are not addressed. The call for avoiding late-year execution is a plea for more responsible fiscal management that prioritizes the consistent delivery of essential services over last-minute spending sprees.

“

Approximately 12 or 13 institutions concentrate about 70% of the total.