(Dec 21): Colombia’s government has signed an economic emergency decree to raise funds to address a widening fiscal deficit, local media reported on Friday.
The decree, which focused on taxing the wealthy, was signed Thursday and filed on Friday ahead of its publication, Interior Minister Armando Benedetti said in a news conference, Semana reported.
The move comes after lawmakers rejected President Gustavo Petro’s proposed tax increases earlier this month, adding new uncertainty to the country’s worsening fiscal outlook. The government is looking to raise 16 trillion pesos (US$4.2 billion) through the decree, Finance Minister German Avila said Friday.
On Dec 17, Fitch Ratings downgraded Colombia’s credit rating one notch deeper into junk territory, citing persistently large budget deficits that will add to the nation’s debt load.
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