Bolivia’s Chamber of Deputies Pursues Consensus on Reformulated 2026 Budget Following Five-Month Delay

Bolivia’s Chamber of Deputies President Roberto Castro confirmed consensus-building efforts are underway to approve the reformulated 2026 General State Budget presented by Economy Minister José Gabriel Espinoza. The legislative body anticipates beginning formal treatment next week once the document completes technical review at the Public Policy and Economic Analysis Unit (Udape), according to statements from PDC party deputies Sandra Rivero and Claudia Bilbao. The budget had not yet arrived at the Legislative Assembly as of April 22, despite the ministerial presentation earlier that week.

The reformulated budget totals 390 billion bolivianos and represents a significant departure from the version inherited from the previous Arce administration. Espinoza reported discovering over 15 billion bolivianos in inflated revenue projections and more than 8 billion bolivianos in expenditures improperly shifted to 2027 execution schedules. The actual fiscal deficit under the previous budget reached 15% of GDP, contrary to the declared 10.2%, according to the minister’s analysis.

The government projects economic growth below 1% with 14% inflation and a fiscal deficit equivalent to 9% of GDP. Current expenditure faces cuts exceeding 4.1 billion bolivianos, while public investment declines by 4.8 billion bolivianos due to removal of projects lacking basic technical documentation or property rights. Despite overall reductions, the reformulated budget allocates an additional 1 billion bolivianos for social investment, creating over 3,000 health sector positions, 2,400 education posts, and 1,500 security roles. More than 2 billion bolivianos target support for vulnerable families.

The five-month delay stems from the current administration’s November 2025 request to halt treatment of the previous government’s budget submission, originally promising delivery in February 2026 before extending deadlines through the subnational elections period. Constitutional provisions mandate economic legislation originate in the Chamber of Deputies, requiring initial treatment by the Plural Economy Commission before Senate consideration.

The Economy Ministry launched the “Bolivia en tiempo real” transparency initiative with Inter-American Development Bank technical support, enabling citizens to monitor resource administration across executive, departmental, and municipal levels. Minister Espinoza committed the tracking system will be operational within weeks for 2026 budget execution oversight. The government plans submitting complementary legislation granting subnational governments greater budgetary flexibility aligned with local needs.