Key Takeaways
- El Salvador President Nayib Bukele announces a 2025 budget that eliminates deficits for the first time in decades.
- The government aims for fiscal independence by managing spending without relying on debt for current expenses.
- The President revealed that the budget will be submitted to the Legislative Assembly on September 30.
Bukele Announces Historic Debt-Free Budget for 2025
El Salvador’s President Nayib Bukele revealed that he will submit a fully financed 2025 budget with no deficit to the Legislative Assembly.
For the first time in decades, El Salvador will not need to borrow money for government spending, according to Bukele.
Bukele emphasized that El Salvador will no longer spend more than it produces annually and will even cover interest on inherited debts without borrowing.
The budget will be presented before the Legislative Assembly on the 30th of September and for the first time in decades, it will be the first fully financed budget, without the need to take a single cent of debt for current spending.
Progress on Economic Stability and Independence
Bukele affirmed that the budget represents a move toward financial and fiscal independence for El Salvador.
The country’s 2024 budget showed a deficit of $338 million, a significant reduction from the $1.2 billion deficit in 2019 when Bukele took office.
El Salvador’s Finance Minister, Jerson Posada, echoed that this budget would not require borrowing from either local or foreign sources.
Bukele said that a more robust economy and a truly independent country will be seen, not only because it has more freedom and security but because it will be financially independent, fiscally independent.
El Salvador holds 5,874 bitcoins worth $331.4 million, showing a 32.6% unrealized gain.
