Urgent: Learn about the three subsidies that will continue in 2025

The National Government has made important decisions about subsidies in Colombia.

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Cuts and reductions have been introduced in response to the country’s fiscal crisis.

The Departamento Administrativo para la Prosperidad Social has announced which subsidies will remain in place in 2025.

It’s official: these are the three subsidies the National Government will keep for 2025

The Departamento de Prosperidad Social has revealed what the budget cuts will look like.

In a major blow to millions of Colombians, the National Government has announced drastic cuts to subsidies as a result of the country’s fiscal crisis.

According to the latest statements by the director of the Departamento Administrativo para la Prosperidad Social (DPS), Gustavo Bolívar, only three subsidies will remain in the 2025 budget.

The three subsidies that will remain in place in Colombia in 2025

The department’s director said that children and older adults are being prioritized for support through government programs.

DPS announced that the subsidy for older adults will continue and, what’s more, its coverage will expand, benefiting 2.8 million people (up from 1.7 million) and increasing the amount from $80,000 to $230,000, with support from the pension reform.

Women who are heads of household are also among the groups covered by the government’s three subsidies. Mothers with children under six will continue to receive the transfer, with no changes to its structure or coverage.

Finally, one of the programs with the most beneficiaries is Devolución del IVA (VAT Refund). This program, which aims to ease the impact of value-added tax on the poorest households, will continue to operate as before.

Subsidies are a fundamental tool in the fight against poverty, and they are vital for many families in Colombia. However, the announced cuts have caused uncertainty and concern among people who depend on this assistance for their daily needs.

Maintaining these three subsidies, especially during a fiscal crisis, reinforces the Government’s commitment to certain vulnerable groups in society. Support for older adults, women who are heads of household, and beneficiaries of Devolución del IVA highlights the need to prioritize those who need help most.

The increase in the subsidy for older adults also shows an effort to improve the living conditions of this growing group. Raising the amount from 80,000 to 230,000 is a direct response to communities’ calls for support they see as a way to survive.

Meanwhile, the subsidy for mothers with children under six will continue unchanged, ensuring that these women have access to resources to cover basic needs during their children’s early years.

Devolución del IVA (VAT Refund), a key program for improving the income of the poorest households, is set to continue, helping offset the impact of the high cost of living. Since VAT can disproportionately affect low-income households, maintaining this subsidy is crucial to ensure that families hardest hit by inflation and the economic crisis can keep moving forward.

In short, although the fiscal outlook is difficult, the National Government has made strategic decisions to preserve these key subsidies. However, it is important for the Departamento Administrativo para la Prosperidad Social to continue evaluating the impact of this assistance and to seek alternatives to expand its coverage and adapt it to the changing social needs of the country.

Public policies require a balance between fiscal sustainability and support for the most vulnerable. This will be an ongoing challenge for the Government in the coming years, especially given the current demographic and socioeconomic trends affecting Colombia.