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🇵🇾 Paraguay /Economy & Trade

Paraguay’s Economy Ministry submits 2027 budget worth 166.3 trillion guaraníes to Congress

From ABC Color · () Spanish

Translated from Spanish and summarized by DistantNews. Read the original for the full story.

At a glance

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  • Paraguay’s Economy and Finance Ministry submitted a 2027 budget proposal totaling G. 166.3 trillion, an 11.2% increase over the approved 2026 budget.
  • The proposal includes payments of outstanding debts to suppliers of the health and public works ministries, which would raise the projected fiscal deficit to 3.9% of GDP in 2027.
  • The executive is seeking an exceptional increase in the fiscal deficit ceiling above the usual 1.5% limit for central government.

Paraguay’s Ministry of Economy and Finance has placed a G. 166.3 trillion national budget proposal for 2027 before Congress, asking lawmakers to examine a plan that combines higher spending with an exceptional expansion of the fiscal deficit.

Finance Minister Óscar Lovera presented the main figures, revenue forecasts and spending priorities to the Bicameral Budget Commission, chaired by lawmaker Cristina Villalba. The proposal is equivalent to US$25.751 billion at an exchange rate of G.6,458 per dollar, and represents an 11.2% increase over the budget approved for 2026.

The plan allocates G.87.9 trillion to the central administration and G.78.4 trillion to decentralized entities. The ministry identifies G.49.7 trillion as rigid spending, covering personnel services, pensions and social programs.

A central measure involves settling outstanding debts owed to suppliers by the Ministry of Public Health and Social Welfare and the Ministry of Public Works and Communications. Lovera said those payments would push the 2026 fiscal deficit to 3.2% of GDP, while the projected deficit for 2027 would reach 3.9%.

The executive is seeking an exceptional expansion of the limit set by the Fiscal Responsibility Law. The normal ceiling for the central administration is 1.5% of GDP, while the proposal requests an additional margin of 2.4% to meet the listed commitments and support planned investment. Congress will assess the measure as it considers the 2027 budget.

Within the spending structure, there are G. 49.7 trillion that we call rigid spending, consisting of personnel services, pensions and social programs.

· Óscar LoveraThe finance minister explained the portion of the proposed budget considered inflexible spending.
About this summary

Originally published by ABC Color in Spanish. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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