1.4% surpluss in first half of 2008

The Colombian government’s consolidated budget ended the first half of
the year with a surplus of 6.80 trillion Colombian pesos (US$ 2.84
billion), equivalent to 1.4% of the country’s gross domestic product,
the Colombian Finance Ministry said Monday in a statement.

The consolidated budget, which includes profits and losses from
state-owned companies and deficits and surpluses of local governments,
ended the first half of 2007 with a surplus of COP2.02 trillion,
equivalent to 0.5% of the country’s GDP at the time.

The central government and the central bank’s surpluses boosted the consolidated accounts, the statement said.

“The data is certainly positive,” said German Verdugo, a market analyst
with local brokerage Correval, said. “Though I don’t think it will be
that good in the second half.”

Tax collection has started to deteriorate, Verdugo said, and will
probably stay that way. In the first nine months of the year, tax
collection failed to meet the government target for the period, the tax
agency said last week.

Verdugo said the government will likely end the year with a deficit equivalent to 1% of the country’s GDP, as targeted.

The Colombian government expects to post a consolidated deficit equivalent to 1.4% of GDP in 2009. (Dow Jones)

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