Juan Carlos Echeverry, the finance minister of Colombia, has stated that even though the Colombia budget 2012 has been approved, further modifications could be made so that the necessities of various ministries could be adequately satisfied.
He has stated that there have been additional requests from sectors such as justice, education and transport, which means that the priorities of the 2012 budget might have to be readjusted.
The Justice Department has asked for extra resources because Colombia is presently being sued for more than $220 billion. The national government has calculated that the aggregate cost of claims, judgments and settlements will be $441 million.
Highlights of Colombia Budget 2012:
The total money allocated as part of the Colombia budget 2012 is $87 billion. Juan Carlos Echeverry stated that previously $97.24 billion had been allotted to the budget.
$2 billion has been set aside for initiatives such as Victims Law, Reparation for Victims and Attention for the Displaced Victims.
$12.5 billion has been earmarked for defense and $11.5 billion will be spent in education.
The agricultural sector will receive a maximum support of $1 billion and $13.6 billion has been allocated for the transport sector in the budget.
$47.21 billion will be used for meeting operational expenditure and $20.42 billion will be employed for debt servicing. The investment sector will receive $19.37 billion.
Compared to the 2011 budget, which had an aggregate allocation of $76.37 billion, the 2012 budget sees an increase of 15.1 percent.
The basic goals of the 2012 budget are reduction of poverty, enhancing national security and generating more jobs.
The Colombia National General Budget 2012 focuses on social expenditure, as mentioned in the national constitution. It also attempts to safeguard the governmental investments.
The budget will look to provide special attention to people who have been forcibly displaced from their land.
Colombia Budget 2012: Proposed Expenses
The following table provides the proposed expenditure of Colombia budget 2012.
Colombia 2012 Budget – Expectations:
It is expected that in 2012 fiscal, Colombia s budgetary deficit will remain under 3 percent. Echeverry has said that finding the right balance in a budget is an important matter. More opportunities need to be created for investments and debts need to be minimized.
Juan Carlos Echeverry has also said that the 2012 Colombia budget is ideal for maintaining a consistent economic performance and will be capable of dealing with expenditure related requirements of different sectors.
Colombia has suffered significant infrastructural damages due to the devastating floods of 2011. The 2012 budget will look to help with effective re-establishment of infrastructure as well as helping the survivors improve their standards of living.
2012 is the year when the Law 1448 of 2011 is expected to be properly implemented the law essentially deals with steps for helping people who have evacuated their homes as a result of violence. The budget is also expected to reflect this properly.