The Ministry of Finance of El Salvador has submitted the 2025 general State budget, totaling $9.663 billion, to the Legislative Assembly for analysis and approval. Announced by President Nayib Bukele on September 15, this budget marks a significant milestone as it is fully funded, meaning no new debt will be incurred for current expenses—a notable departure from past fiscal practices.
Minister of Finance Jerson Posada highlighted that for the first time in decades, the budget boasts a zero-dollar gap, ensuring that annual spending will not exceed collected revenues. “Next year, El Salvador will no longer spend more than it collects annually. We will continue to guarantee compliance with national and international obligations, all with our own income,” Posada stated.
The proposed budget reflects a reduction of $970 million compared to the current fiscal year. In contrast to the $338.6 million gap approved for the current budget, the 2025 plan aims for a balanced approach to fiscal management.
Key allocations include $1.536 billion for education and $1.170 billion for health, with an emphasis on improving the infrastructure and equipment of the national hospital network. Additionally, $903.4 million has been earmarked for security and national defense, aimed at sustaining the security climate achieved through the Territorial Control Plan and its associated measures.
To foster modernization and connectivity in the nation, $409.9 million will be allocated to the Ministry of Public Works and the Road Conservation Fund. This budget reflects the government’s commitment to responsible fiscal management and prioritizing essential services for the Salvadoran people.