The agency responsible for monitoring Colombia’s fiscal policy will cease operations by year-end due to funding reductions.
Colombia’s fiscal watchdog, the Independent Fiscal Institution, will close later this year after the government slashed its budget. The agency, tasked with evaluating public spending and debt sustainability, warned the move could weaken fiscal transparency and accountability.
The decision follows a broader austerity push by President Gustavo Petro’s administration, which has faced criticism over spending priorities. The watchdog previously flagged concerns over rising debt levels and off-budget expenditures, raising alarms among investors and credit rating agencies.
Markets have yet to react significantly, but analysts suggest the shutdown may increase fiscal risks and reduce investor confidence in Colombia’s economic governance.