Paraguay's Social Spending Rises 14% to US$2.59 Billion by May

Paraguay's social spending surged to G. 15.8 trillion (US$2.59 billion) by May 2026, marking a significant 14% increase compared to the same period in 2025. This growth, detailed in a report from the Ministry of Economy and Finance's Budget Directorate, was primarily driven by substantial gains in the Health and Education sectors. Health spending saw a 16% rise, attributed to strengthened efforts in providing essential services, while Education expenditure increased by 15%. These funds have been directed towards financing educational services across various levels and bolstering student nutrition programs like 'Hambre Cero en Nuestras Escuelas' (Zero Hunger in Our Schools).

The report highlights that Education constitutes the largest portion of social expenditure, accounting for 33% of the total with G. 5.2 trillion. These resources are crucial for educational services from basic to secondary levels and for the school feeding program. Health follows as the second-largest component, representing 26% of the spending with G. 4.1 trillion. Together, these two sectors not only absorb the majority of social expenditure but also explain the overall increase observed this year.

Beyond Health and Education, the Promotion and Social Action sector accounts for 21% of the executed social spending, while Social Security represents 17%. This distribution underscores the government's focus on public policies aimed at enhancing citizen welfare and protection, complementing investments in health and education. The overall increase in spending is also linked to expanded coverage within the Promotion and Social Action programs.