Highlighting strong domestic economic performance, El Salvador’s Executive branch officially presented a $12,421 million general state budget proposal for 2027 to the Legislative Assembly. Introduced by Finance Minister Jerson Posada, the proposal expands public spending by 17.7% ($1,865 million) over this year’s $10,555 million figure. Crucially, officials confirmed the government will maintain existing tax rates and avoid creating new taxes to fund the expansion.
A major driver of the new fiscal plan is a landmark commitment to public education, allocating $3,416 million—equivalent to 8.1% of the national GDP—to fulfill a key promise by President Nayib Bukele. This record figure, three times larger than prior administrative averages, targets school modernization through the Dos Escuelas por Día program ($562 million across agencies) and digital initiatives, artificial intelligence tools, and university scholarships ($415 million).
The 2027 spending package also expands healthcare investments to $1,493 million (up by $147 million), allocates $997 million for Justice and Defense, and sets aside $146 million for community infrastructure through the Municipal Works Directorate (DOM). Alongside these major allocations, key social subsidies will remain fully funded to protect household income and spur private investment.
“The budget we presented today is not simply a distribution of public resources; it is the financial and social planning of a transformed country that conquered peace and now reinforces the path toward development,” stated Minister Posada. Assembly Vice President Suecy Callejas welcomed the bill, noting that lawmakers in the budget commission will immediately begin formal review procedures.