Finance Minister Jerson Posada Molina presents the draft state budget for 2025 to the legislative president, Ernesto Castro. / Video image of the Legislative Assembly.
TheMinister of Finance,Jerson Posada Molina, delivered on Monday to the president of the Legislative Assembly, Ernesto Castro, a draft general budget of the State for a total of$9,663 million, a decrease of $970 million from the estimated closing budget of 2024 according to the official.
The budget is $595 million higher than thebudget submitted for the year 2024But after the changes over the year it has increased to $10.755 million, according to the budget execution released on the Tax Transparency Portal.
Posada Molina promised that the project presented “includes all expenses for the next fiscal year without the need for additional financing,” which means that “estimated current income” will finance expenses such as remuneration, goods and services, current transfers and interest payments of the debt; while capital income such as loans and grants already approved will finance capital expenditures, mostly investment projects.
The budget projects tax revenues of $7.677.6 million, $747 million more than in 2024, a 5.6 percent growth, which it attributed to economic growth, public safety, construction and tourism boom, and control plans, administrative measures, fights evasion and smuggling, and electronic billing.
Today we are presenting the first fully funded budget in decades, which does not include a single penny of current spending debt. From next year, El Salvador will no longer spend more than it collects annually.”
Jerson Posada Molina, Minister of Finance.
According to the official, the proposed budget includes $217.4 million for gas, transportation and electricity subsidy programs, as well as $192 million for veterans and packages to farmers. “The subsidies are maintained, we are not affecting social programs or subsidies,” he said.
A total of $3,609.6 million is allocated for the Education, Health, Safety and Defense branches, 37.4 per cent of the budget, distributed as follows:
- Education: $1,535.8 million
- Health: $1,170.4 million
- Security and Defense: $903.4 million
In the budget, wage increases and levels are suspended, the prohibition of the programming of new places in all institutions and the number of places in force must be maintained and the health and education ladder be frozen.
Minister Posada said the unfunded gaps have decreased, although he did not take into account the budget reforms or debt issues approved during each year of budget management.
Budget breaks not funded by the Treasury for years
- 2019: $1.2 billion
- 2020: $645 million
- 2023: $472 million
- 2024: $338 million
- 2025: –
We are going to pass it on to the Committee on Finance and they are going to do the programming to invite each of the ministers to come and explain to the Salvadoran people, really, how each of the ministries are designed. There in December we are going to schedule that it will be the plenary that makes the decision.
Ernesto Castro, president of the Legislative Assembly.
It would increase public investment by $131.9 million
The project allocates $1.7 billion to the Annual Public Investment Programme (PAIP), $131.9 million increase, equivalent to 8.4 percent year-on-year growth.
Posada Molina said the government continues with the “very close” relationship with multilateral agencies, as financing with public investment will continue.
According to Haciendan data from January to July$388.4 million has been executedof the more than $2.3 billion provided for public investment during the financial year 2024.
Some planned investment projects
- Continuation of investment in the Los Chorros viaduct: approximately $190 million.
- ISSS Mother’s Child Hospital.
- Apopa’s Bypass.
- Reconstruction of markets in Santa Ana and San Miguel.
- Investments in Surf City II.
- Rehabilitation of schools.