The Executive branch authorized new modifications to the General National Budget (OGN) for 2026, totaling 330.177 billion guaranis, approximately 55 million dollars. The changes were formalized through decrees and include an increase of 39.099 billion guaranis for the Ministry of Social Development, destined for the acquisition of land and buildings.
Other adjustments involve 2.0078 billion guaranis redirected for works by the National Electricity Administration (ANDE) and a reallocation of 130.4166 billion guaranis to cover salary payments for personnel at the Ministry of Public Health. Furthermore, 158.442 billion guaranis were allocated to the National Cement Industry for services, consumer goods, and physical investment.
As of July, the execution of the 2026 budget had already reached 47% of the 84 trillion guaranis currently in effect. This amount represents a 5% growth compared to the value initially approved by Congress, driven by both legislative increases and Executive decrees.
Meanwhile, a new report from the credit rating agency Moody's analyzes Paraguay's fiscal framework. The study, which compares 18 Latin American countries, points out that Paraguay maintains one of the most austere public spending structures in the region, between 17% and 18% of GDP from 2021 to 2025, an advantage for fiscal stability.
However, the analysis warns of a structural problem: the state's low revenue collection capacity. At the same time, a growing portion of the budget is already committed to rigid expenses, such as public sector salaries, subsidies, and transfers, which increased from about 13% of GDP in 2019 to approximately 14% in 2024. This combination reduces the fiscal space available for the government to react to crises or sustain public investment, which lost about one percentage point of GDP in the same period.
Moody's acknowledges that Paraguay maintains strengths, such as a relatively low public debt, projected around 41% of GDP in 2025, and compliance with the Fiscal Responsibility Law, factors that support its investment-grade credit rating (Baa3) with a stable outlook. The agency even places Paraguay among the countries in the region with the best conditions to absorb external shocks.
Nonetheless, the assessment highlights a central dilemma: a state that spends little and has controlled debt, but collects less, sees its room for fiscal maneuvers shrink as mandatory commitments increase. The economy's dependence on vulnerable sectors, such as agriculture and hydroelectric generation, reinforces the importance of expanding revenue collection capacity to preserve resources that allow it to face emergencies and finance necessary investments in the future.