The constitutional amendment process in Paraguay combines legislative safeguards and citizen participation to prevent hasty changes to the Constitution. Approval by Congress and a mandatory referendum serve as safeguards for institutional and fiscal stability.

In this eighth installment of the series “Constitutional Safeguards for Fiscal Stability in Paraguay,” the constitutional protection of economic rights constitutes one of the most crucial institutional pillars for our nation’s sustainable development.

In this seventh installment of the series “Constitutional Safeguards for Fiscal Stability in Paraguay,” we analyze the Constitutional Fiscal Rule: Zero Structural Deficit. Our nation has made significant progress in institutionalizing fiscal discipline. The Fiscal Responsibility Act (No. 5098/2013) established a limit on the central government’s deficit of 1.5% of GDP, a framework that has served as an anchor during times of turbulence.

As of March 2026, Paraguay’s gross public debt stands at around 35.5% of GDP, according to data from the Ministry of Economy and Finance, while Chile ended 2025 at 41.7% and has already reached 42.6% in the first quarter of 2026. Chile operates under a dual fiscal rule—a structural balance plus a prudential debt anchor set at 45% of GDP—which has been internationally praised, although it faces growing pressures.

In a regional context where most Latin American countries are grappling with mounting fiscal pressures and debt-to-GDP ratios exceeding 60%, both our country and Chile maintain notably moderate and very similar levels of public debt.