Colombia Congress approves $78.7 billion 2020 budget

[October 17, 2019]   BOGOTA (Reuters) - Colombia's Congress late on Wednesday approved a 2020 government budget of 271.7 trillion pesos ($78.7 billion), hours after the top court rolled back a tax reform proposal that was meant to provide new resources for state spending.

Colombia's Finance Minister Alberto Carrasquilla Barrera speaks during the Fourth Colombian Business Congress in Medellin, Colombia August 15, 2019. REUTERS/David Estrada

The figure represents an increase of 10.2% compared to the current year.

"We are coming out of this ... with strengthened public finances and a clear horizon for 2020," Finance Minister Alberto Carrasquilla said after the approval of the budget.

Colombia's constitutional court on Wednesday overturned a tax reform law that took effect this year, potentially affecting investment and forcing the government to find new resources.

The budget allocates 170.1 trillion pesos ($49.3 billion dollars) to operating expenses, an increase of 8.7% over 2019, and 47.3 trillion pesos ($13.7 billion dollars) to investment, an increase of 16.1%.

It sets aside 53.3 trillion pesos ($15.4 billion) for debt service. The sector receiving the greatest resources will be education with 44.2 trillion pesos ($12.8 billion dollars), while 42.7 trillion pesos ($12.4 billion) will be used to pay pensions.

Colombia's economy will expand 3.6% this year, according to the budget targets, above the 2.6% growth of 2018.

(Reporting by Luis Jaime Acosta, writing by Brian Ellsworth)

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