Colombia Gov't To Boost 2023 Budget By $4.7Bn, Minister Says

• Colombia's government is expected to hike its 2023 budget by some 23 trillion Colombian pesos (US$4.71Bn) in a proposal to be sent to Congress on February 17, 2023, the country's interior minister said last Thursday.
• Almost all of the additional funds will come from a recently passed tax reform Interior Minister Alfonso Prada said in a radio interview.
• Notably, the approved tax reform approved back in November 2022, will raise an additional 20 trillion pesos (US$4 billion) annually for the next four years. The reform increases duties on oil and coal, raises income taxes on the rich, and targets single-use plastics and processed food and drinks.
• The funds will be aimed at backing President Gustavo Petro’s wide-ranging social programmes, specifically purchasing land for planned agrarian reforms. In addition to pending health reform, Petro also hopes to change the country's labour and pension systems, and offer free university education to low-income students.
• These programs will be pushed because more than half of Colombia's population currently lives in poverty, according to government data. These proposals are therefore intended to not only meet fiscal codes and reduce public debt but also aimed at targeting the social disparities in the country.

(Source: Reuters)