El Salvador closed fiscal year 2025 with record figures that significantly strengthened the State’s finances. According to data from the General Directorate of Treasury at the Ministry of Finance, current revenues and contributions reached $8.2983 billion, an increase of $647.9 million compared to 2024, reflecting an 8.5% year-on-year growth.
This increase was largely driven by the country’s economic dynamism and improvements in tax collection mechanisms. Strictly tax-related revenues accounted for $7.9861 billion of the total, confirming the central role of taxation in sustaining public finances amid expanding economic activity.
Value Added Tax remained the main source of revenue, totaling $3.8176 billion, a 9% increase compared to the previous year, fueled mainly by higher import activity. Income Tax collection reached $3.328 billion, showing solid taxpayer compliance and a 7.3% growth year over year.
Minister of Finance Jerson Posada attributed these results to the implementation of innovative tools such as electronic invoicing and stronger actions against tax evasion. “Revenue growth is the result of modernized processes,” the official stated, noting that El Salvador has moved from a critical primary deficit in 2020 to a projected primary surplus of 1.9% of GDP by the end of 2025.
The improved fiscal performance has begun to gain recognition from international credit rating agencies, strengthening global confidence in El Salvador’s economy. With these additional resources, the government has greater capacity to finance social programs and strategic public investment while maintaining fiscal stability without opening new budget gaps.