Paraguay’s Minister of Economy, Oscar Lovera, presented the proposed 2027 General National Budget to Congress on for its consideration and review. The government’s spending plan for the upcoming year totals ₲166.3 trillion, which is equivalent to approximately US$27.7 billion at the current exchange rate.
This proposed budget represents an 11.5% increase compared to the ₲149.1 trillion budget approved for 2026. The plan outlines significant allocations for key public services, including health, education, and infrastructure, while also addressing social programmes and outstanding government debts.
Key 2027 national budget spending allocations
A substantial portion of the budget is designated for the national health system, which is set to receive a total of ₲18.2 trillion (approximately US$3 billion). Within this allocation, a specific amount of US$762 million has been earmarked for the procurement of medical supplies and medicines, according to the minister’s details.
For the education sector, the proposal includes a total of ₲10.4 trillion. This figure incorporates an additional ₲194 billion for teacher salaries and classroom hours. Furthermore, another ₲58 billion is allocated to finance the escalafón docente, a structured ranking and salary system for educators.
Social programmes and infrastructure
The budget also prioritises social welfare, with ₲65 billion designated for programmes aimed at vulnerable children. These funds are intended to provide 497,196 care services, with a specific focus on children aged between zero and three years.
In terms of physical investment, the Ministry of Public Works and Communications (MOPC) has been assigned ₲9.2 trillion. This includes an additional ₲2.3 trillion aimed at strengthening the paved road network, maintaining existing routes, dredging rivers, and improving water and sanitation services across the country.
Economic projections and fiscal deficit
The government anticipates a tax revenue growth of 8.6% for the coming year, an increase from the 6% projected for 2026. Addressing questions about budget constraints experienced in 2026, Lovera explained that fluctuations in the exchange rate had put pressure on customs revenue, which saw a 13% decline. However, he noted that internal revenue collections had increased by 11%.
A fiscal deficit of 3.9% of GDP is projected for the 2027 fiscal year. According to Lovera, this figure is influenced by the inclusion of payments for past-due debts, particularly to road construction contractors and health suppliers. He stated that if debt management and anticipated progress in public works were excluded, the effective deficit would stand at a lower 1.9% of GDP.
Find more information on Paraguay’s Ministry of Economy and Finance website.
