Colombia closed the 2014 fiscal year with a $5.1 billion gap, the country’s comptroller general said Tuesday while calling for increased prudence in government spending amid dropping oil revenue.
Comptroller General Edgardo Maya presented his revision of the 2014 government accounts in Bogota.
According to the fiscal watchdog, the COP1.95 trillion fiscal gap was similar to 2.08% of the country’s GDP.
With oil prices at half of what they were a year ago, Maya called on the administration of President Juan Manuel Santos to act with increased prudence in regards to government spending to avoid the 2015 gap to be even wider.
This would threaten the sustainability of the budget and further pressure the economy as it could force the government to make further spending cuts.
For 2016, Finance Minister Mauricio Cardenas has already presented austerity measures to counter the disappointing oil revenues that make up 20% of Colombia’s total government income.
Colombia’s ‘austerity’ budget for 2016: Investment cuts and stricter tax policy