The draft General National Budget for 2027 once again highlights a structural tension: a government with high aggregate spending but weak institutional performance. The document submitted to Congress totals G. 166.3 trillion, approximately $25.7 billion at the budgeted exchange rate of G. 6,458 and nearly $27 billion if a rate closer to the market rate is used.

For our economy to truly grow, we don't need to raise taxes. We need to remove artificial barriers and make the system fairer and more inclusive for everyone.

Paraguay boasts one of the most competitive tax systems in Latin America thanks to the “Triple 10”: 10% VAT, 10% income tax on individuals (IRE), and 10% corporate income tax (IRP). However, the current tax structure suffers from distortions that limit its potential, resulting in high levels of informality and a tax base fragmented by exemptions.

The investment-grade rating achieved by Paraguay is neither a trophy to display on a desk nor a point of arrival. In market terms, it is a paradigm shift that gives us approximately five years of tailwind.

What does this mean? Large companies are seeking to bring their production closer to their main markets. Paraguay, located in the heart of the Southern Cone and blessed with clean, abundant energy from our dams, has everything it needs to become the region’s major industrial and technological hub.