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El Salvador’s General State Budget for 2027 will face a financing gap of US$515 million. The government plans to cover this shortfall by issuing securities or securing supplementary loans if necessary, according to Finance minister Jerson Posada, who presented the details to the Legislative Assembly’s Finance Committee. The official explained that this financing requirement stems from the expansion of the education budget and investments linked to that sector.
The proposed budget for the upcoming fiscal year totals US$12,421.04 million, an amount covering the resources the government needs to fund its expenditures and programs throughout 2027. Given the announced gap, a portion of the required funds would depend on securing additional financing, either through the issuance of securities or by obtaining supplementary loans.
Posada explained that the need for financing is driven, among other factors, by increased funding for education and related investments. “Regarding the gap, the budget will require additional financing because the education budget, and all investment related to it is being expanded”, the official said.
Education to receive us$3,416 million in 2027
One of the key allocations in the draft budget is for the education sector, which is set to receive US$3,416 million. According to the Finance minister, this amount represents 8.1% of the estimated Gross Domestic Product (GDP) for 2027 and accounts for 27.5% of the total projected budget.
The official described this allocation as a record investment, noting that such a high budget had never been proposed for the Ministry of Education. The expansion of resources for this area is one of the factors that, according to the Ministry of Finance, explains the need for additional funding for the coming year.
Regarding specific allocations, the bill includes US$118.5 million for the Universidad de El Salvador (UES). Additionally, US$100 million is earmarked to continue the “Dos escuelas por día” program, along with another US$112 million for the school improvement plan carried out by the Dirección Nacional de Obras Municipales (DOM).
Posada noted that the budget calculations were based on GDP projections for 2027. The proposal aims to support educational investment through a resource allocation that, according to the government, exceeds the amounts previously dedicated to this sector.
Legislative Assembly to review 2027 budget
The draft General State Budget and Special Budgets for the 2027 fiscal year, along with the Salary Bill for the same year, were approved by the Council of Ministers and submitted to the Legislative Assembly on september 30. Upon receiving the documentation, the Finance Committee began reviewing and analyzing the proposals.
During the initial working session, lawmakers met with the minister and deputy minister of Finance, Jerson Posada and Luis Sánchez, respectively, as well as the director general of the Budget, Carlos Salazar, and the Director General of Investment and Public Credit, Marlon Herrera, all of whom participated in presenting the bill’s key components. As part of the review process, the commission approved a schedule of meetings for the heads of ministries, autonomous institutions, and other government entities to explain the planned use of resources for 2027.
The institutions summoned include the ministries of Justicia y Seguridad Pública, Defensa, Obras Públicas, Agricultura, Turismo, Educación, Economía, Salud y Cultura, Fiscalía General de la República, la DOM, Fondo de Conservación Vial, Universidad de El Salvador and other public entities.
The legislative review will allow for an examination of the proposed allocations for each institution before the budget approval process for the coming year is finalized.
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