Paraguay’s 2027 General National Budget (PGN) bill projects spending of G. 166.3 trillion and a fiscal deficit of 3.9% of gross domestic product (GDP). Presented to Congress by Economy and Finance Minister Óscar Lovera, the proposal assumes economic growth of 4.2%, inflation of 3.5%, an exchange rate of G. 6,458 per dollar and an 8.6% increase in tax revenue compared with the 2026 estimates.
The government says it intends to return in 2028 to the 1.5% of GDP deficit limit established by the Fiscal Responsibility Law. The projected reduction is 2.4 percentage points in just one year. Economist Robert Soto said the pledge will need intermediate targets, controls on the growth of current spending, debt monitoring and permanent revenue sources to finance permanent expenditures. “A target without a plan is an aspiration; a target accompanied by specific measures becomes a credible fiscal policy,” he said.
Part of the increase in spending is related to the incorporation of accumulated obligations to health suppliers, companies contracted for public works and other creditors. Soto said recognizing these obligations could make the accounts more transparent, but argued that Congress should examine the origin of the debts, the economic assumptions and the impact on future borrowing. The International Monetary Fund recognizes the need to regularize overdue obligations, but also recommends a return to the fiscal rule and improvements in public financial management.
Among the social programs, the bill allocates G. 7.387 trillion to Hambre Cero, the Universal Pension for Older Adults and Tekoporã Mbarete, equivalent to 4.44% of the proposed budget. The school meal program would receive G. 3.2 trillion to provide 335 million meals to 986,194 students in 2027. Implementation would be handled by the Ministry of Social Development in coordination with the departmental governments.
Víctor Mendoza Larroza, president of the Paraguayan Chamber of School Food Companies (Caepy), said current payments remain within the usual 60-day period, but expressed concern about tenders for the 2027–2030 period. He said the reference amounts do not incorporate accumulated food inflation of 23%, the Central Bank of Paraguay’s 3.5% inflation projection or the 8.7% increase in the minimum wage between 2024 and 2026. The organization submitted a technical and economic proposal to the government to try to ensure the program’s continuity through 2030.
The Universal Pension for Older Adults would receive G. 3.6 trillion and add 30,000 new beneficiaries, reaching 406,196 people. The bill provides G. 422 billion more than in 2026. Tekoporã Mbarete would receive G. 587 billion to assist 200,000 families; the Early Childhood program would receive G. 65 billion; and Abrazo, administered by the Ministry of Children and Adolescents, would receive G. 770 million.