2027 budget debate raises questions about social programs and Hambre Cero contracts

Debate over Paraguay’s 2027 social budget questioned the results of programs such as Tekoporã and Tenonderã and the operation of Hambre Cero, whose contracts totaled G. 3.8 trillion for Comepar and Ladero Paraguayo, while lawmakers demanded oversight of school time and the use of funds.

2027 budget debate raises questions about social programs and Hambre Cero contracts

Debate over Paraguay’s 2027 social budget exposed both doubts about the results of assistance programs and the financial scale of Hambre Cero, a school-meal policy. The discussions took place in the Bicameral Budget Committee during the presentation of the Social Development Ministry’s plan.

The ministry is set to receive G. 5.62 trillion under the budget proposal, an increase of G. 672.810 billion, or 13.59%, from 2026. Senator Esperanza Martínez questioned Minister Tadeo Rojas about the lack of evaluations showing how many families had escaped poverty after taking part in programs such as Tekoporã and Tenonderã.

Rojas said the National Statistics Institute measures Tekoporã’s effects on poverty indicators and promised to send more detailed data to the committee. He acknowledged, however, that about half of the beneficiaries remain in a situation similar to the one they were in when they entered the program. For 2027, the government plans to assist 200,000 families with G. 587.368 billion, of which G. 553.891 billion would be direct transfers.

The minister also said that approximately 20,000 people turn 65 each year. The annual cost of the old-age pension is about US$563 million, and its expansion depends on tax revenue. Martínez linked that pressure to informality: according to the senator, a labor market in which about 60% of workers are outside the formal economy limits access to social security and could increase future reliance on public benefits.

In the case of Tenonderã, aimed at people who have gone through Tekoporã and may develop small businesses, the government plans to allocate G. 33.620 billion for 7,125 participants in 2027. Each beneficiary receives G. 4 million as start-up capital. In 2026, 3,420 people had already been included and another 3,705 were awaiting processing.

School meals also came under criticism. Liberal lawmaker Freddy Franco said the service was consuming too much of the school day and advocated limiting the program to vulnerable communities. Rojas replied that legislation requires universal coverage in public schools and that the Education Ministry is responsible for monitoring compliance with the school schedule. He stressed that, for many children, the meal provided at school is the main or only meal of the day.

As the committee discussed Hambre Cero’s operation, data from the Comptroller General’s Office showed a concentration of major public contracts in the sector. Comepar accumulated G. 2.002 trillion in 2024 and 2025, mainly through two multiyear contracts. Ladero Paraguayo SA totaled G. 1.864 trillion in 29 contracts, rising from G. 517.573 billion in 2024 to G. 1.346 trillion in 2025.

The difference between the number of contracts and their values calls for caution: multiyear agreements set ceilings for several periods, and the total awarded does not necessarily mean that the entire amount has already been executed or paid. Even so, the figures show that universal school meals have created one of the country’s largest public-procurement markets, with simultaneous effects on student nutrition, management of school time, and oversight of billions of guaraníes.

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