Guatemala's 2027 Budget Prioritizes Infrastructure, Security, Education, and Healthcare

Guatemala has presented its proposed US$23.7 billion national budget for 2027, outlining higher public investment in infrastructure, security, education, and healthcare while projecting 4% economic growth for the year.

The proposal represents a 7.5% increase compared with the current national budget and will be submitted to Congress before the legal deadline for approval.

Government projects economic growth and lower fiscal deficit

During a press conference, Finance Minister Jonathan Menkos announced that the proposed budget totals 181.56 billion quetzales (US$23.7 billion).

The government's macroeconomic outlook includes 4% GDP growth and a fiscal deficit equivalent to 3.7% of gross domestic product (GDP), slightly below the 3.8% deficit projected for 2026.

Menkos noted that, despite the increase in public spending, Guatemala continues to operate with one of the region's smallest public budgets.

"Guatemala continues to have the smallest public budget in Central America and one of the smallest in the world, but we are making the best possible use of it," Menkos said.

The minister also emphasized that the government intends to maintain a strategic approach to public borrowing.

"We continue to use public debt in a strategic, rational manner with clear development and welfare objectives."

According to the projections, Guatemala's public debt is expected to reach 27.9% of GDP by the end of 2027.

Tax revenue expected to increase without new taxes

The government estimates tax revenues of approximately US$17.19 billion, which would raise the country's tax burden to 12.1% of GDP.

According to Menkos, the increase would come from improved productivity and stronger efforts to combat tax evasion, rather than the introduction of new taxes.

Infrastructure receives major investment allocation

The proposed budget includes extraordinary investments equivalent to 1.8% of GDP, with a significant share directed toward infrastructure projects.

Among the largest planned investments are:

• US$626 million for the second phase of the modernization and expansion of Puerto Quetzal on Guatemala's Pacific coast.
• US$459 million for the Priority Road Projects Fund, aimed at improving transportation infrastructure.

These investments are intended to strengthen the country's logistics network and support long-term economic development.

Education, healthcare, and security lead government spending

Education would receive the largest allocation under the proposed budget, with US$3.64 billion earmarked for the sector.

Healthcare follows with US$2.43 billion, while the Ministry of the Interior, responsible for public security, would receive US$1.37 billion.

The allocations reflect the government's focus on expanding social development while reinforcing public safety.

Current budget execution remains on track

For comparison, Guatemala's 2026 national budget totals 168.77 billion quetzales (approximately US$22.03 billion).

As of June 25, government spending had reached 70.06 billion quetzales, representing 41.5% of the approved budget. Officials expect overall budget execution to reach approximately 92% by the end of the year.

During the presentation, President Bernardo Arévalo stressed that public resources should serve the country's broader development goals.

"State budgets do not belong to the government; they belong to the nation, they belong to the people."

The president added that his administration is committed to managing public resources transparently and efficiently to generate development opportunities.

Budget proposal heads to Congress

Under Guatemalan law, the Executive Branch must submit the national budget proposal to Congress no later than September 2 each year for legislative review and approval.