Guatemala's Budget Under Scrutiny: Experts Raise Concerns Over Public Spending, Debt, and Electoral Financing

Guatemala's public finances are under intense scrutiny, as detailed in Canal Antigua's "Destino 2025" special. The program, which evaluates the Arévalo administration's management after 17 months, brought together experts to dissect the nation's economy, public investment, and spending quality. During the analysis, concerns were raised regarding the efficiency and transparency of public spending. One analyst, Mario Rosales, noted that despite a large budget, overall execution stands at approximately 32.9%, with the Ministry of Environment showing the lowest figures. He questioned whether increased budget execution truly reflects the needs and expectations of Guatemalan citizens. José Carlos Ortega, another analyst, emphasized a critical lack of focus, asserting that the most pressing issues for the population are justice and security, which are not receiving adequate attention. He highlighted the significant national debt, exceeding 32 billion Quetzales, and argued that this financial burden does not translate into tangible benefits for the populace. Ortega contended that when an institution lacks focus and attempts to address too many issues, it ultimately achieves nothing effectively. Conrado Reyes pointed out that nearly 14% of the national budget, approximately 150 billion Quetzales, is allocated solely to debt repayment to international bodies like the World Bank and the International Monetary Fund. He critically observed that this substantial sum has not been invested in public services over the past 17 months, suggesting that such uninvested debt is economically disadvantageous. Cristians Castillo further elaborated on the issue of unexecuted funds, stating that around 20 billion Quetzales from the urban and rural development councils are likely to be rolled over from 2024 to 2025. He expressed concern that these substantial funds might not be executed in 2025 either, but instead held over to 2026 or 2027 to finance electoral campaigns for district deputies and mayoral candidates. This raises serious questions about the priorities of the Congress of the Republic. The comprehensive analysis underscores a prevailing sentiment among experts that the current management of public resources in Guatemala is failing to meet the public's expectations for tangible improvements in their daily lives, instead focusing on administrative processes and potentially political maneuvering.