BOGOTA (Reuters) – Colombia’s government on Friday presented a law to the country’s Congress to raise public spending in its budget this year by 25.4 trillion pesos ($5.11 billion) in a move to finance the social plans put forward by President Gustavo Petro.
Most of the resources to hike public spending will come from a tax reform approved by Congress last year, which came into affect in January, as well as those obtained from public companies.
The bill would add 8.6 trillion pesos ($1.73 billion) to this year’s budget, bringing the budget total to 414.2 trillion pesos ($83.4 billion).
Lawmakers originally approved a budget worth 405.6 trillion pesos.
To increase public spending Colombia’s government will reduce fuel subsidy payments, which will now flow directly from dividends paid by majority state-owned oil company Ecopetrol.
The extra money will go towards purchasing land for agrarian reform, constructing…