Colombia’s Fiscal Reckoning
President De La Espriella’s Rescue Bill broadens the tax base but leaves some key subsidies untouched. Will he be able to fulfill a campaign promise?
BOGOTÁ—President Abelardo De La Espriella campaigned on a promise to reduce the size of Colombia’s state by 40% without raising taxes. However, the Economic Rescue Bill his government submitted to Congress on October 29 shows how difficult it will be to keep that pledge. Although the government claims that much of the fiscal adjustment will come from spending cuts, most of it would actually come from higher taxes and social security contributions. Still, the proposal deserves the legislature’s full attention. Colombia urgently needs to repair its public finances, and the bill takes...
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