Paraguay’s finance chief defends 2027 exchange-rate forecast and review of tax exemptions

Paraguay’s Finance Ministry is defending a 2027 budget proposal built around debt management, pressure on the health system and protection against exchange-rate volatility. Economy Minister Óscar Lovera presented the plan to the Bicameral Budget Commission during its opening meeting.

Lovera said the proposal followed an internal review of Executive spending and was designed to reflect the government’s priorities for the next fiscal year. He told legislators that the ministry was ready to provide technical explanations about the amounts included in the draft.

The first discussions focused particularly on outstanding debts linked to the Ministry of Public Works and Communications and the Ministry of Public Health. The government also identified the organization of public finances and the stabilization of the health sector as priorities.

One of the main technical questions concerned the exchange rate used in the budget. Although the PGN is expressed in guaraníes, the ministry also must account for expenses and commitments set in U.S. dollars. Lovera said the projected rate for 2027 is 6,458 guaraníes per dollar.

He said the estimate provides a margin in case the U.S. currency rises more than expected, reducing the risk that the budget will fall short of financial needs. The proposal will now face scrutiny from the commission and, later, both chambers of Congress. The government is also reviewing tax benefits as legislators examine the plan.

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