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September 3, 2024
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How Colombia could raise $14 billion without resorting to new tax reform

How Colombia could raise $14 billion without resorting to new tax reform

In a letter addressed to the Economic Commission of the Congress of the Republic, Councilman Daniel Briceño presented an “austerity proposal” so that Colombia can obtain 14 billion pesos without resorting to the tax reform that the Government is preparing.

According to the opposition councilor, The financing law contemplated by the Ministry of Finance could be harmful because it would imply an increase in the tax burden of Colombians.

For Briceño at this time, when the General Budget requires an additional 12 billion pesos, “It is imperative to consider alternatives that prioritize efficiency and austerity in public spending”.

Faced with this situation, the Councillor announced his approach to “recover 14 billion pesos from the current National General Budget”thus eliminating the need to process a new financing law.

Key points of the proposal

According to Daniel Briceño, the Colombian State has the capacity to limit and reduce its operating expenses in specific areas of excessive or inefficient spending, such as:

– 5.4 billion pesos in expenses of the National Protection Unit (UNP), which correspond to the following expenses:

* 3.4 billion in spending on hiring bodyguards.
* 1.8 billion in armored vehicle rentals.
* $75 billion in fuel costs.
* 44 billion in differential measures.

– 1.2 billion pesos in logistics and events expenses, from entities such as:

* Ministry of the Interior spends $201 billion on events.
* DIAN with expenses in events for $191 billion.
* Victims Unit spends $117 billion on events.

– 5.43 billion pesos in service provision contracts (OPS), which represent:

* A 106% increase in public spending on OPS
* An increase of 157% in the number of contracts

– 1.8 billion pesos allocated to the Ministry of Equality.

* Entity with a current execution of 1.1% and with duplication of functions with the Department of Social Prosperity.

– 38 billion for the opening of 21 new consulates.

– 145 billion in advertising and propaganda, through the Media Centers of the National Order entities.

For the Councillor, the implementation of a cut in the above-mentioned expenses and a review of the resources not used by national entities would not only avoid the need for a new tax reform, but would also significantly improve the efficiency of public spending.

PORTFOLIO

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