Colombia | What Size of Government Do We Need and Can We Afford?

Summary

Public spending in Colombia has grown faster than revenues, pushing the deficit and debt up to 61% of GDP. Fiscal sustainability requires aligning spending with actual revenues, defining the optimal size of the State, and prioritizing efficient investments that boost well-being and growth.

Key points

• Key points:
• Central Government spending rose 100% in nominal terms and 43% in real terms between 2019 and 2024, far outpacing revenue growth.
• The deficit and net debt have increased, with the latter reaching 61% of GDP in 2024.
• The primary deficit will rise to 2.4% of GDP in 2024, up from 0.3% in 2023.
• Spending is growing due to executive, judicial, and legislative decisions, without a reassessment of its size.

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