The Government of Guatemala presents the 2026 budget with a 5.8% increase

Guatemala City.- The Guatemalan Government presented this Monday its budget proposal for 2026 for an amount of more than 21.4 billion dollars, which represents an increase of 5.8% in relation to this year's, and a deficit of 3.3%, below the 3.8% expected for the current fiscal year. "We are increasing the budget (of 2026) because we are increasing public investment: more schools, better health, and better education. We are delivering more products," highlighted the Guatemalan president, Bernardo Arévalo, in a press conference.

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In the same conference, the Minister of Finance, Jonathan Menkos, explained that the proposed amount is 163.783 million quetzals (around 21.409 million dollars), 8.946 million quetzals (1.169 million dollars) higher, that is, 5.8%, than the 2025 budget, according to the official. This is the "smallest national budget in Central America" and one of the lowest worldwide, declared the head of Finance of Guatemala, where around 18 million people live. "This is a solidarity budget," President Arévalo pointed out, noting that 45% of the budget will be allocated to the social area. The portfolios with the most allocations for next year are Education, with an amount of 3.521 million dollars, 5% more than 2025, and Health, with 2.171 million dollars, which exceeds this year's budget by 8.8%. In addition, the Ministries of Governance (Interior) add up to 1.249 billion dollars, 15.6% more than in 2025, and the Ministry of National Defense will be 616 million dollars, 22.3% higher than the current one. Menkos stated that the budget will prioritize improving and increasing public investment, combating smuggling and customs fraud, and the fight against corruption. "Public spending will be more inclusive so that it reaches more people," the minister justified, while explaining that a fiscal deficit of 3.3% is estimated, lower than the 3.8% of 2025. The 2026 budget project represents 16.2% of Guatemala's Gross Domestic Product (GDP), down from 16.4% in 2025, he added. Guatemala's economy will grow this year between 3% and 5% of the gross domestic product (GDP), according to data from the Bank of Guatemala. The International Monetary Fund's forecasts put that rate at 3.8% in 2025, while it will "slightly exceed 3.5%" in 2026. According to Guatemalan legislation, the Executive Branch, through the Ministry of Public Finance, has until September 2 of each year to present the draft budget to Congress. The Legislative Body, for its part, has until November 30 of each year to approve, modify, or reject that budget project.