Global Economic Times

Paraguay's 2025 National General Budget Increases by $337.6 Million by May Due to Super Tucano Purchase and School Meal Expenses: Eugenio Rodolfo Sanabria Reporter / Updated : 2025-06-13 02:23:22

Paraguay's 2025 National General Budget (PGN) increased by approximately $337.6 million as of May, influenced by the purchase of Super Tucano light attack aircraft and expenditures for school meals. According to a recent announcement from Paraguay's Ministry of Economy and Finance (MEF), the initial budget of 74.6 trillion Guaranies (approximately $9.425 billion) rose by 3.6% to 77.2 trillion Guaranies (approximately $9.762 billion). This represents an increase of nearly $340 million in just three months.

The MEF explained that the primary reasons for the increase in the 2025 PGN are the acquisition of aircraft for national airspace defense, specifically the Super Tucano light attack aircraft produced by Brazil's Embraer, and an increase in the budget for school meals. The Super Tucano, in particular, is known as a multi-role aircraft capable of performing various missions, including counter-insurgency, close air support, and reconnaissance, and is expected to play a crucial role in modernizing the Paraguayan Air Force.

Continuous Budget Increase Trend and Key Expenditure Details

The Paraguayan government has been implementing monthly budget increases of approximately $100 million since March. In March, the PGN increased by more than $120 million compared to the initial budget, and in April, the increase widened to $216 million. This continuous budget increase is interpreted as a reflection of the government's commitment to strategic national investments and the improvement of social welfare.

So, how is the increased PGN being used? According to the MEF report, as of May, the total expenditure was 25.9 trillion Guaranies (approximately $3.274 billion), which accounts for 33.5% of the total budget. Of this, 21.6 trillion Guaranies (approximately $2.73 billion), or 84%, was spent by the top six public institutions.

The institution that executed the largest portion of the budget was the Ministry of Economy and Finance, spending 8.5 trillion Guaranies (approximately $1.0 billion). Of this, 6.8 trillion Guaranies (approximately $871 million) was used for paying civil servant pensions and retirement benefits, and for public debt repayment. This demonstrates the government's efforts to maintain fiscal soundness and strengthen the social security system.

The second largest budget executor was the Ministry of Education and Science (MEC), which spent 4.1 trillion Guaranies (approximately $522 million) by May. Of this, 66% was used for expenses for students in primary, secondary, and higher education institutions, as well as for youth and adult education. This indicates active government investment in the education sector.

The Ministry of Public Health was third, spending 3.4 trillion Guaranies (approximately $441 million). Of this, 86% (3 trillion Guaranies, or approximately $382 million) was used for paying healthcare worker salaries and purchasing medical supplies and equipment, contributing to the improvement of public health.

Other key budget-executing institutions include:

Ministry of Public Works and Communications (MOPC): Executed 2.2 trillion Guaranies (approximately $278 million), primarily used for infrastructure projects such as the expansion and duplication of PY02 and PY07 highways, the opening and maintenance of PY0 highway, and improvements to the Pedro Juan Caballero-Capitán Bado-Ypejhú section.
Ministry of Interior: Executed 1.4 trillion Guaranies (approximately $186 million), with 92% allocated to police officer salaries, focusing investment on maintaining public order.
Ministry of Social Development: Used 1.5 trillion Guaranies (approximately $201 million), primarily for social welfare programs such as elderly pensions, school meal provision, and the Tekoporã program. The Tekoporã program is a conditional cash transfer program aimed at improving the basic living standards of vulnerable populations.
Overall, the increase in Paraguay's 2025 National General Budget is centered around two important goals: strengthening national defense and improving citizens' education, health, and social welfare. These budget expenditures are expected to contribute to Paraguay's long-term development and the improvement of its citizens' quality of life.