The Legislative Assembly of El Salvador received the 2027 General State Budget proposal this Wednesday, an initiative that projects spending of USD 12,421 million, as presented by the Ministry of Finance during the delivery ceremony. The proposal represents an increase of USD 1,865 million, equivalent to 17.7%, compared to the budget approved for 2026.
Finance Minister Jerson Posada presented the document before deputies of the Finance and Special Budget Committee, accompanied by Vice Minister Luis Sánchez and other officials from the ministry. The first vice president of the Legislature, Suecy Callejas, reported that the text will be sent to the full chamber and that its review will begin in the committee on Wednesday, October 7.
Posada stated that the main component of the proposal is the allocation for education, which would amount to USD 3,416 million, or 27.5% of the total budget. According to the official, that figure is equivalent to 8.1% of the estimated gross domestic product for 2027.
Education would account for USD 3,416 million of the projected spending
The project includes USD 415 million for computers, tablets, high-speed connectivity, and the incorporation of Artificial Intelligence into learning processes, according to the official presentation.
It also provides USD 562 million for educational infrastructure. Of that amount, USD 350 million would go to the Ministry of Education, USD 100 million to the Ministry of Public Works, and USD 112 …
AI Brief
Your highlights
Finance Minister Jerson Posada handed the 2027 budget proposal to legislator Suecy Callejas. (Courtesy: Ministry of Finance)
El Salvador's Legislative Assembly received the 2027 General State Budget proposal this Wednesday, an initiative that projects spending of USD 12,421 million, according to the Ministry of Finance during the handover ceremony. The proposal represents an increase of USD 1,865 million, equivalent to 17.7%, over the budget approved for 2026. Finance Minister Jerson Posada presented the document to deputies of the Finance and Special Budget Committee, accompanied by Vice Minister Luis Sánchez and other officials from the ministry. The first vice president of the Legislature, Suecy Callejas, reported that the text will be sent to the plenary and that its review will begin in the committee on Wednesday, October 7.
Posada stated that the main component of the proposal is the allocation for education, which would amount to USD 3,416 million, 27.5% of the total budget. According to the official, that figure equals 8.1% of the estimated gross domestic product for 2027.
The project includes USD 415 million for computers, tablets, high-speed connectivity, and the incorporation of Artificial Intelligence into learning processes, according to the official presentation. It also provides USD 562 million for educational infrastructure. Of that amount, USD 350 million would go to the Ministry of Education, USD 100 million to the Ministry of Public Works, and USD 112 million to the Directorate of Municipal Works for the Two Schools per Day program.
The initiative also incorporates USD 134 million for uniforms, shoes, and school supplies for students in the public system. The Mi Nueva Escuela El Salvador program would receive an allocation of USD 117.6 million, while the Complete Educational Trajectories and Climate Change Resilience plan would receive USD 55.3 million.
Among the announced items are USD 90 million for university scholarships, USD 33 million for school connectivity, USD 23 million to reduce the digital divide, and USD 53 million for culture and arts initiatives. According to Posada, the Government plans to transfer USD 40 million from the security and defense sectors to education. The minister stated that this reallocation would not affect the benefits of police, military, and administrative personnel, nor the allocations needed to maintain security policies.
The Education sector will concentrate USD 3,416 million, the figure equivalent to 27.5% of the total national budget (Courtesy: Ministry of Finance)
Posada detailed that the Health sector would have USD 1,493.1 million, representing an increase of USD 147 million compared to 2026. For Justice and Defense, the project provides USD 997.2 million. This allocation incorporates the USD 40 million reduction announced by the Executive to reinforce educational spending.
The budget text also includes resources for infrastructure works. Among them are USD 69 million for continuing construction of the viaduct and widening of the Los Chorros highway; USD 103 million to modernize the San Óscar Arnulfo Romero International Airport of El Salvador; and USD 58.97 million for the construction and equipping of the Pacific International Airport. The proposal also allocates USD 31 million to the Apopa bypass, USD 22 million to Surf City phase II, and USD 146 million to the municipal works program under the responsibility of the Directorate of Municipal Works. The Doctor SV program would receive an allocation of USD 150 million.
The Health sector will have USD 1,493.1 million, while the Justice and Defense sector will receive USD 997.2 million. (Courtesy: Ministry of Finance)
Posada indicated that projected current revenues for 2027 reach USD 10,419 million, an increase of USD 1,266 million, 13.8% more than in 2026. Tax revenues are estimated at USD 9,569 million, with a projected increase of USD 1,220 million. The official asserted that the proposal does not include new taxes or increases in existing taxes. He attributed the revenue projection to economic growth, tax collection, and tax modernization measures, including electronic invoicing and the digitalization of procedures.
The project establishes a budget gap of USD 515 million, which the Ministry of Finance linked to the expansion of resources for priority spending, especially for education.
The budget proposal reserves USD 258.9 million for social subsidies and USD 40 million for organizing the 2027 elections. (Courtesy: Ministry of Finance)
The proposal guarantees USD 258.9 million in subsidies: USD 124 million for propane gas, USD 64.1 million for electricity, and USD 70.7 million for public transportation. It also provides USD 60.8 million for agromarkets and central supply markets, plus USD 59 million for the agricultural bonus. The document includes USD 40 million for the extraordinary special budget for the 2027 elections and USD 2.1 million for voting from abroad.
The Ministry of Finance noted that the project covers internal, external, and pension debt commitments.
Legislator Callejas stated that the Assembly will forward the project to the Finance and Special Budget Committee, which will summon ministers and officials to explain their spending plans. The deputy indicated that the president of the Legislature, Ernesto Castro, asked that the budget be approved before the end of 2026.