Colombia may axe $3B rain damage budget request

Colombian President Juan Manuel Santos said on Monday the government may withdraw a request to Congress for $3.16 billion in additional 2011 budgetary resources to help pay for flood damage.

Latin America’s No. 5 economy has been seeking Congressional approval for extra budgetary resources of 5.7 trillion pesos to help pay for damage from floods that displaced 2.8 million people and killed almost 400.

“It’s possible we’ll withdraw it because right now it’s not necessary,” Santos told reporters. He gave no details on why the resources may not be needed nor where the money to pay for the damage would come from.

Bogota was forced to ask Congress for the extra money last month after the constitutional court struck down a presidential decree authorizing the additional amount.

Santos’ statement seems to contrast with earlier predictions by the finance minister that resources to pay for flood damage repairs were running out.

The government’s weather office sees the La Nina weather phenomenon lasting until June. Downpours due to La Nina have rocked the Andean nation and neighboring Venezuela since last year, causing billions of dollars in damage, destroying crops, washing away homes and killing livestock.

(Reuters)

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