Paraguay’s draft 2027 National General Budget (PGN) provides $76.5 million to subsidize public transport in Asunción and the metropolitan area. The amount is 35% higher than the $58.6 million provided for in the 2026 budget. According to Economy and Finance Minister Óscar Lovera, however, the 2027 funds are practically the same as the amount originally planned for 2026, after cuts made during that budget’s legislative process.
The coverage is linked to a trust, with financing through public borrowing and, according to local reports, bond issuance. The proposed financing does not yet represent a completed operation.
Lovera presented the justification at the first session of the Congressional Bicameral Budget Committee, established to analyze the proposal. According to the minister, some funds were redirected during the processing of the 2026 budget, and the restoration seeks to provide greater predictability for the system during the transport reform led by the Ministry of Public Works and Communications (MOPC).
“For us, providing greater predictability means financing through borrowing,” the minister said. He said the trust structure and the use of public debt are intended to ensure payments as the reform moves forward.
Independent lawmaker Rubén Rubín challenged the increase. According to Rubín, it makes no sense to raise the subsidy while quality problems, buses in poor condition and a lack of visible progress in service reform persist. He also questioned the increase in funding without a clear improvement for passengers in return.
The transport debate took place amid discussions about the 2027 public accounts. The draft maintains an exchange-rate projection of 6,458 guaraníes per dollar, while Senator Beto Ovelar suggested an estimate of 6,000 guaraníes to reduce the risk of failing to meet obligations. Lovera responded that the rate reflects economic agents’ projections and a prudence margin, since the state has expenses in foreign currency.
“We have expenses in dollars and, if we make a forecast without knowing the trajectory, we may be left without resources to meet those obligations,” the minister said. He added that exchange-rate fluctuations have already negatively affected the public accounts and that the government will have to prioritize essential spending.
The projected fiscal deficit is 3.9% of gross domestic product. Some lawmakers defended removing the limit, while lawmaker Mauricio Espínola mentioned returning to the 1.5% ceiling. Lovera said the deficit is linked to debt payments and the progress of projects, but also defines the room available for new borrowing.
The obligations cited include $1.05 billion in debts to suppliers of the Ministry of Public Health and Social Welfare and $220 million owed by the MOPC. The Bicameral Committee, chaired by lawmaker Cristina Villalba with Beto Ovelar as vice chair, is expected to meet on Mondays at 9 a.m. while the budget is being reviewed.