Last Wednesday, when the debate began, no consensus was reached on the total amount proposed by the Government, which is pushing for 523 trillion pesos (over US$130 billion at the current exchange rate).

The conflict between the Executive and the Legislature mainly stems from a complementary proposal put forward to make up for the current deficit in the budget bill, amounting to 12 trillion pesos, close to US$ 3.0 billion at the current exchange rate.

Seeking to put the fiscal modification aside, several congress people have demanded that the document submitted by the Government be amended.

One of them was the Speaker of Senate Efrain Cepeda, who boasted having enough votes to derail the initiative in Congress, even before the document’s contents became public.

The legislator presented a General Budget of 511 trillion pesos (over US$ 127 billion), that is the e same amount suggested by the Ministry of Finance, less the 12 trillion pesos included in the financing law that seeks a greater collection.

The Minister of Finance Ricardo Bonilla advocated the Government’s proposal, assuring that the Budget “does not entail a Tax Reform as so far claimed, but a financing bill featuring three critical components, such as fiscal policy actions, aimed at creating stimuli to reactivate the economy.”

He added that the approval of Congress is vital to cover the losses derived from the recent Constitutional Court decision on mining-energy royalties.

For its approval, the financing law must receive green light at the two economic commissions of the Senate and in the other two commissions in charge of this issue in the House of Representatives.

If the lack of consensus persists, the proposal would pass to the President, who has the power to approve it by decree.

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