Colombia’s central government posted a surplus worth 2.4% of gross domestic product (GDP) in the first half of 2012, reported the Ministry for Finance Monday.
The government surplus is up from 1.3% of GDP for the same period last year. The improved fiscal situation comes as the Ministry for Finance reported that tax revenue grew by 22.5% largely due to the significant increase in the payment of income shares by large taxpayers.
This result shows revenue of 9.5% of GDP and expenditure of 7.1% of GDP. The Ministry for Finance noted that expenditure during the second half of the year typically accelerates due to seasonal influences.
Outgoing Finance Minister Juan Carlos Echeverry said that Colombia could end the year with a budget defecit of 0.9% while the central government could have a deficit of 2%. The government hopes to have a balanced budget by 2014.