Paraguay's Ministry of Economy and Finance (MEF) has begun drafting the General Budget of the Nation for 2027 with a comprehensive review of all programs and spending structures of public institutions. Minister Óscar Lovera stated that the goal is to evaluate the efficiency and relevance of currently funded activities before approving new resources.
Lovera explained that several institutions maintain budget structures designed a decade ago, with activities incorporated without a thorough assessment of their current need. The focus will be redirecting resources to priority areas, especially Health, a sector facing high demand and pending commitments.
Simultaneously, the MEF plans to include in the budget proposal a request to Congress to raise approximately $600 million through bond issuance or loans. These funds will be allocated to paying accumulated debts with suppliers of the Ministry of Health.
Before resorting to new borrowing, the government seeks to settle part of these obligations through a rights assignment mechanism. In this system, companies assign their collection rights to financial institutions in exchange for immediate liquidity, while the state will pay installments to banks over 36 months.
Estimates indicate that rights assignment operations should reach about $450 million, leaving a remaining balance of approximately $600 million in commitments – $400 million related to medicines and $200 million to medical services, dialysis, and equipment.
The MEF projects that, even with this financing, Paraguay's public debt will remain below 40% of GDP. The fiscal strategy also includes returning to the 1.5% of GDP deficit limit established by the Fiscal Responsibility Law by 2028.
Lovera reaffirmed that the government does not plan to create new taxes but rather review tax exemptions and deductions to increase revenue without raising rates. The 2027 General Budget of the Nation must be sent to the National Congress by September 1 for legislative analysis and discussion.