Colombia’s Congress sunk the government’s budget finance bill, which sought to close a $2.8 billion budget gap.
The congressional economy commissions voted to discard the bill weeks after voting against multiple budget proposals.
President Gustavo Petro, who tried to significantly increase public spending, said that the House and Senate commission votes were “a blow to the Colombian people.”
The president and his finance minister have been trying to move away from the neoliberal political orthodoxy that has dominated government spending since the 1970’s.
Petro’s progressive spending plan is fiercely opposed by the conservative and far-right opposition that insist on austerity to make up for increased spending during the coronavirus crisis in 2020 and 2021.
Congress’ decision all but forces the government to move away from its budget plans, which prioritized peace building and poverty reduction.
The president has the authority to issue the national budget per decree, but can’t increase the deficit without congressional approval.
Petro previously warned that he would make sure that the poor won’t be affected by the congressional opposition to his spending proposals.
