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The Ministry of Finance presented the General State Budget Bill for 2027 to the Legislative Assembly, totaling US$12.421 billion, an increase of US$1.865 billion over the budget approved for 2026. This represents a 17.7% year-over-year increase, according to information shared during the bill’s presentation.
Education: A key priority
The education sector is set to receive US$3.416 billion, equivalent to 8.1% of the projected 2027 Gross Domestic Product (GDP) and 27.5% of the total budget. The Ministry of Finance noted that this allocation makes El Salvador, according to statements made during the presentation,the Latin American country that invests the largest share of its economy in education.
Technology and artificial intelligence
The education allocation includes US$415 million for the distribution of computers and tablets, high-speed school connectivity, and the integration of artificial intelligence into learning processes. The proposal thus outlines resources to expand the technological tools available to students in the public education system.
Increased resources for school infrastructure
The bill earmarks US$562 million for school infrastructure. Of this amount, US$350 million is allocated to the Ministry of Education, US$100 million to the Ministry of Public Works, and US$112 million to the Directorate of Municipal Works, designated for the “Two Schools Per Day” program.
Uniforms, supplies, and student support
The proposal also includes US$134 million for the provision of uniforms, shoes, and school supplies to students in the public education system. In addition, US$117.6 million is earmarked for the program supporting complete educational pathways and climate change resilience.
Digital divide and higher education
Other educational investments include US$23 million to reduce the digital divide, US$33 million for the school connectivity program, US$90 million for university scholarships, and US$53 million to promote culture and the arts.
Reallocation of security funds
The presentation also announced the reallocation of US$40 million from the security and defense sectors to education. The Ministry of Finance explained that these funds, originally intended for weaponry and ammunition, will now be directed toward the education and training of children and young people. The Justice and Defense sector would receive an allocation of US$997.2 million, accounting for this reallocation.
Health and infrastructure among priorities
The draft budget allocates US$1,493.1 million to the Health sector, representing an increase of US$147 million compared to 2026. It also includes funding for infrastructure projects, such as US$69 million to continue the viaduct and highway expansion at Los Chorros, US$103 million to modernize the Aeropuerto Internacional de El Salvador San Óscar Arnulfo Romero, and US$58.97 million for the construction and equipping of the Pacific International Airport.
Revenue and no new taxes
Current revenue for 2027 is projected at US$10,419 million—an increase of US$1,266 million, or 13.8%. Tax revenue is expected to reach US$9,569 million. The Ministry of Finance stated that the proposal does not include the creation of new taxes or increases to existing ones, noting that projections factor in measures such as the digitization of tax processes, electronic invoicing, and tax enforcement plans.
Subsidies, production, and elections
The budget allocates US$258.9 million for subsidies, distributed as follows: US$124 million for propane gas, US$64.1 million for electricity, and US$70.7 million for public transport. Also included are US$60.8 million to strengthen agricultural markets and supply centers, and US$59 million for the agricultural subsidy (bonus). US$40 million is earmarked for next year’s elections, in addition to US$2.1 million to ensure voting from abroad.
Legislative review of the bill begins
Following the bill’s submission, the Legislative Assembly must refer it to the Finance and Special Budget Committee, where its various allocations and components will be examined. During the presentation, it was announced that the committee may summon ministers and officials to explain the planning for each area. The Assembly also stated its aim to have the 2027 General State Budget approved before the end of 2026.
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