The Economy Commission of Colombia’s Senate struck down a law that sought finance the government’s 2026 budget with a tax reform targeting the elite of the country’s elite.

The tax reform sought to close a $4.2 billion (COP16.3 trillion) gap in the budget that had been approved by Congress, but was struck down by nine of the 13 senators that make up the commission.

The vote is another blow for President Gustavo Petro, whose administration was forced to cut spending last year after Congress rejected both his proposed budget and the accompanying finance bill.

Petro was able to have his budget approved after agreeing to a reduced spending increase, which initially stood at $6.5 billion (COP26.3 trillion).

In a response, the president blamed the sinking of the finance bill on the political opposition’s “political hatred” of his progressive policies.

The collapse of financial law, as was predictable, is nothing more than the development of political hatred above the national interest. No sane person can say that, faced with a deficit, more resources should not be obtained from a buoyant economy and from the mega-rich who have doubled their profits thanks to the rise in public debt.

President Gustavo Petro

Finance Minister German Avila refused to rule out a declaration of an economic emergency, which would give the president exceptional powers to, among other things, sign off on the finance law without congressional approval.

We will not rule out any of the alternatives that may arise to ensure compliance with the national budget development plan for the coming year.

Finance Minister German Avila

Petro stressed that his government would not allow the poor to pay for the consequences of Congress’ refusal to secure the financing of next year’s budget.

If the rich don’t pay for the crisis, the poor will, but as long as we are in government, we will not let the poor pay for it, period.

President Gustavo Petro