The Paraguayan government published Decree No. 6120, which establishes additional measures for the optimization, prioritization, and efficient management of public spending under the General Budget of the Nation for fiscal year 2026. The regulation, signed by President Santiago Peña and Minister of Economy and Finance Óscar Lovera, aims to strengthen the financial sustainability of the State, prioritize essential spending, and reinforce discipline in the administration of public resources.
The initiative by the Ministry of Economy and Finance (MEF) is based on the principles of efficiency, responsibility, and transparency set forth in the State Financial Administration Law and the Fiscal Responsibility Law, taking into account the current economic context and the need to ensure prudent management of public finances.
Among the main provisions, the decree mandates the prioritization of spending on health, education, security, and social programs, ensuring the continuity of essential services to the population. It also establishes the priority use of Institutional Resources (Fuente 30) before resorting to Treasury Resources (Fuente 10), seeking a more sustainable management of public accounts.
The regulation also provides for the submission of institutional plans to regularize outstanding obligations with suppliers and contractors, in order to organize and bring transparency to the State's financial commitments. In addition, it imposes restrictions and rationalization measures on operational expenses, procurement of non-essential goods, office equipment, catering services, and new non-priority investments.
The decree stipulates that certain quota migrations under the Financial Plan require prior authorization from the MEF, reinforcing control and monitoring mechanisms for budget execution. According to the government, the measures aim to safeguard the balance of public finances, ensure the coverage of essential obligations, and strengthen institutional credibility through responsible and transparent management of public resources.