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Vista general del salón de sesiones del Congreso colombiano durante un debate legislativo, sin rostros identificables
Vista general de un debate legislativo en el Congreso colombiano. · Imagen generada para EPM

Democratic Center backs spending cuts with a middle-class condition

Democratic Center lawmakers backed the spending cuts in the Fiscal Rescue Law and warned they will not support increases that fall on the middle class.

--- The context --- The Government of Abelardo De La Espriella presented the so-called Fiscal Rescue Law to reorder the Nation finances, and its passage through Congress opened a discussion about how the adjustment should be made. The Democratic Center, the governing party, takes part with a longstanding defense of reducing the size of the State and cutting public spending as ways to order the accounts without shifting the effort onto households. The reaction of several lawmakers came after a message from the @ByViral24 account on X, published on October 30, 2026, which accused lawmakers, especially those of the Democratic Center, of seeking bureaucracy and putting pressure on the Government. According to that message, there will be no bureaucracy in this Government even if pressure is attempted, because this Government came to change politics, and its authors warned that they will not be intimidated. --- The facts --- Lawmakers from the Democratic Center backed the public spending cuts in the Fiscal Rescue Law, but warned that they will not support any increase in taxes, contributions or consumption levies that falls on the Colombian middle class. The position shared by six lawmakers sets a condition for the passage of the law: support an effective reduction of the state apparatus without transferring the cost to the income and consumption of Colombians. Among the measures valued by the bench are concrete administrative cuts. Representative Daniel Briceño said he would back the administrative cuts, the tax rebates and the investment incentives, and he valued a 50% reduction in contractors, a 20% reduction in the official payroll and restrictions on events and receptions. He also valued a cut in the corporate income tax from 33% to 31% and backed the VAT refund for lower-income sectors. --- The positions --- Senator Andrés Forero replied in an ironic tone and argued, in summary, that the Government presents its Fiscal Rescue Law and his party announces support for cutting the State, but not for raising taxes, while pro-government accounts attack it as if they already had the votes to raise taxes. Forero also defended the coherence of the bench: he said it is not pressing for bureaucracy and will support reducing the State and lowering spending, with coherence on taxes as well. Senator Hernán Cadavid argued that the strategy cannot be to attack the governing party that stands alongside, and proposed keeping the whole Government together and talking with Congress, workers and productive sectors to explain the scope of the reform, while stating that his party will not allow the middle class to be harmed. Senator Juan Caicedo recalled an initiative presented together with Julia Correa to cut in half the Legislative Work Units of lawmakers themselves, and argued that they demand austerity from the Government and also set an example. Senator Rafael Nieto Loaiza recalled that on September 16 the bench presented a bill to reduce the size of the State, suppress unnecessary entities and cut public spending, and he contrasted the new bill with the budget discussion, in which, according to his account, his bench and a majority of the coalition proposed reducing spending by two points of GDP before the 634.5 trillion budget was approved. Nieto Loaiza added that good proposals must be backed wherever they come from and that the country needs quick solutions, with a yes to the adjustment while avoiding burdens on citizens who can give no more. Senator María Clara Posada focused her position, as she presented it, on the effect on families and young people: she argued that the middle class gave the Government its victory and warned about increases in income tax, social security and basic products of the family basket, giving as an example a young person who would have to pay 19% VAT on a tablet or a computer for studying. Posada also questioned the planned distribution for 2030 and noted that, out of every $100 of the fiscal adjustment in 2030, $35 are spending cuts and $64 are taxes and contributions, so she proposed cutting the functioning of the State by 3% of GDP and announced that she will not vote for increases for working families. Briceño summed up his stance as no posts and no taxes and also proposed cuts for oversight bodies and for Congress itself. --- What remains unknown --- What remains unknown is how the final composition of the adjustment will look in the text that advances in Congress, what weight spending cuts will finally have compared with other components and how the conditions raised by the bench will be processed. The outcome of the dialogue that Cadavid himself proposed with workers and productive sectors to explain the scope of the reform is also unknown, as is the definitive way in which the middle class will be protected in the vote. Those points will be defined during the legislative passage and will determine the real scope of the law. --- Unanswered questions --- Will the legislative process ensure that the weight of the adjustment falls on spending cuts and not on middle-class income? Will the VAT refund for lower-income sectors be kept and strengthened as protection for the most vulnerable households? Will lawmakers accept a final text that raises contributions or consumption levies on working families? Will Congress set an example of austerity by also reducing its own expenses, as the initiative on Legislative Work Units proposes for lawmakers themselves and their staff? --- EPM analysis --- The debate leaves a broad point of agreement that should not be overlooked: the Government and its bench share the goal of reducing the State, cutting spending and ordering the finances, and the bench itself adds austerity proposals that begin with the expenses of Congress. The VAT refund for lower-income sectors is backed as a mechanism of social protection within the adjustment, and investment incentives and tax rebates are part of the same valued package. The condition raised orders the negotiation over the composition of the effort, and its outcome will define whether the adjustment protects family budgets while the state apparatus becomes smaller and more disciplined. 📌 EPM Take: In EPM's view, the most valuable part of this discussion is that support for the cuts was made explicit and came with austerity proposals of its own, including reducing the expenses of lawmakers themselves and protecting lower-income sectors through the VAT refund for households. That combination of a smaller State, investment incentives and protection for lower-income households marks an adjustment path with a social sense and a clear order of priorities. The middle-class condition should be read as part of the legislative negotiation to safeguard that path, and Congress will do well to resolve it by giving priority to cutting public spending first.
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