*Honduras’ government led by President
Xiomara Castro has unveiled its budget proposal for 2026, which will now be debated in the unicameral congress. The draft budget plans for L469.25bn (US$17.91bn) in spending, an increase of 8.2% on the 2025 budget. This includes a record L104bn in public investment, amounting to 9.5% of GDP. Debt servicing is expected to total L69bn in the next fiscal year, and in a statement the finance ministry stated that the government will push ahead with its plan for tax reform to reduce tax exemptions that it said will cost the public purse L90bn in 2026.
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