The Inter-American Development Bank (IDB) estimates that every dollar invested in public infrastructure in Paraguay generates only $0.50 in economic returns over two years, well below the regional average of $1.10 and that of countries such as Chile ($2.70) or Peru ($2.00). This low return is due to delays in flagship projects, such as national highways and hospitals, as well as poor planning that diverts resources toward unproductive uses.

In this sixth installment of a 12-part series titled “The Origins of Fiscal Imbalance in Paraguay: a technical and comparative perspective,” I explore in depth the fiscal deficit in our country. We will discuss the burden of fixed expenditures, focusing on current spending, which consumed 54.1% of tax revenue in 2025—it was like a chain binding the country. Public sector salaries, medications, and social programs such as Tekoporã dominated the budget, leaving little room for investment.