The Finance Committee of the Legislative Assembly began the study of the Draft Law of the General State Budget 2025, presented by the Minister of Finance, Jerson Posada. With an amount of US$9,663 million, the new budget marks a milestone by not including external debt to finance current expenses, a significant advance in the fiscal management of the country.
Minister Posada stressed that all the income that the State will collect will cover current expenses, avoiding resorting to debt. “We will not need to seek resources from external debt to finance it”, he said, highlighting the government’s commitment to economic stability.
In the past, some budgets were presented without a financial gap, but they lacked transparency, since they did not include debt, as Posada explained. However, the current budget follows a more responsible approach and was designed to be approved with a qualified majority in the Legislative Assembly.
The 2025 budget includes the continuation of essential social programs, such as subsidies for gas, public transportation, electricity, and the Agricultural Packages program. Investments in projects focused on early childhood are also maintained.
Posada clarified that the budget does not include increases in taxes such as property tax or VAT, highlighting that growth projections and the good performance of the economy support the financial plan.
Regarding public investment, greater resources will be allocated to projects of the Instituto Nacional de los Deportes (INDES) and the Instituto Salvadoreño para el Desarrollo de la Mujer (ISDEMU), reinforcing the strategic areas for the development of the country.
The key areas of the budget include education with US$1,535.8 million, health with US$1,170.4 million, and security and defense with US$903.4 million, reflecting the government’s priority in improving basic services and national security.