US EditionColombia Declares an Economic Emergency in a Criticized Effort to Raise More Taxes
The emergency decree aims to raise funds for fuel subsidies, health care, and military infrastructure amid a $134 billion budget and failed $4 billion tax bill, officials said.
- On Monday, President Gustavo Petro issued an economic emergency decree in Bogota allowing Colombia's national government to impose taxes by decree to address fiscal shortfalls.
- Petro's administration recently failed to pass a tax bill that would have boosted revenues in 2026, as public spending exceeded pandemic-era levels since last year.
- Leaked plans reported last week by local media show the government has not published the law detailing new wealth taxes and alcohol sales-tax proposals.
- Amid sharp pushback, business associations denounced the decree as authoritarian and Bruce Mac Master called it a 'flagrant abuse of the rule of law,' while many analysts expect the Constitutional Court of Colombia to overturn it, with Jorge Restrepo saying convincing the court will be difficult.
- Ahead of the 2026 elections, the decree must meet Colombian legal standards for economic emergencies, which require threats to be 'grave, imminent and unexpected,' within a roughly $134 billion 2025 budget.
29 Articles
29 Articles
With a view to the 16.3 billion pesos in which its budget for 2026 is formally defunded, the Government of Gustavo Petro declared a state of economic emergency throughout the country on Monday. This decision, eight days after the beginning of this fiscal period and in the midst of judicial leave, has opened a debate on the justification of a declaration, whose legal examination falls to the Constitutional Court. In the opinion of the Executive, …
Colombia Declares Economic Emergency Amidst Budget Crisis
Colombia Declares Economic Emergency Amidst Budget Crisis In response to mounting fiscal pressures, Colombia's government has announced an economic state of emergency, granting President Gustavo Petro's administration the power to impose taxes by decree. The move comes after the government failed to secure congressional support for a tax bill designed to bolster the nation's budget by USD 4 billion by 2026.Proposed measures aim to address critic…
By Fernando Ramos, CNN en Español. The Colombian government declared a State of Economic, Social, and Ecological Emergency on Monday, an exceptional measure, provided for in the Constitution, that grants the president extraordinary powers to issue such decrees. The Ministry of Finance justified this measure by arguing that there is a financing crisis for the 2025 and 2026 budgets, aggravated by the failure of the financing laws in Congress and t…
Associated Press News
Colombia declares an economic emergency in a criticized effort to raise more taxes
Colombia’s government has declared an economic state of emergency that enables President Gustavo Petro’s administration to issue taxes by decree.
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