Proposed Guatemala infra budget not enough, says minister

If the Guatemalan congress approves the budget proposal drafted by the government, the communications, infrastructure and housing ministry (CIV) would be allocated 6.5bn quetzales (US$869mn) next year.

The proposal was unveiled by finance minister Julio Héctor Estrada in a cabinet session held Thursday.

CIV's head José Benito Ruiz said the figure would not be enough to cover the country's road infrastructure needs, nor to address the damage caused by the recent eruption of the Fuego volcano. CIV was originally requesting 13bn quetzales, according to local media.

The costs of rebuilding roads damaged by the eruption has been estimated at 230mn quetzales, of which 130mn quetzales are expected to be needed in the current fiscal year. Ruiz said that CIV will allocate 250mn quetzales for an emergency fund and another 200mn to purchase parametric insurance.

The ministries will now begin drafting their spending plans and deliver them to the finance ministry by mid-July. The final proposal is expected to be submitted to congress by the end of August.

The total budget that the finance minister is proposing for next year amounts to 88.99bn quetzales.