El Salvador has seen significant improvements in tax collection due to strengthened fiscal discipline, according to Minister of Finance Jerson Posada. The country achieved $7,648.6 million in taxes last year, marking an increase of $504 million, or 7.1%, compared to 2023.

Minister Posada highlighted that fiscal discipline has been a key priority of President Nayib Bukele’s government. He noted that measures such as electronic invoicing, administrative improvements, and an aggressive plan to combat tax evasion and avoidance have been critical in boosting the country’s tax revenue. As a result, the tax burden increased to 21% in 2024, up from 18% in 2020.

During his participation at the International Economic Forum Latin America and the Caribbean 2025, held in Panama last week, Minister Posada emphasized that the government’s efforts also include improving public spending efficiency. These efforts include cuts in non-essential areas, referred to as “fat,” to streamline operations and ensure fiscal sustainability.

The minister further reported that the government has achieved a historic milestone by presenting a fully balanced budget for 2024, a first in El Salvador’s history. «We have gone from budget gaps exceeding $1 billion to a balanced budget for 2024, which will finance government spending with its own income, eliminating the need for new debt issuance,» Posada stated.

Despite these fiscal measures, Posada assured that public investment and social programs remain a priority, with 37% of the budget being allocated to health, education, and security—critical sectors that account for approximately 10% of the country’s GDP.