Uruguay: Government Submits 2025–2029 Budget Bill, Triggering Heated Debate

Montevideo – On Sunday, August 31, 2025, the Uruguayan government formally submitted its National Budget Bill for 2025–2029 to Parliament.

The 714-article proposal was delivered by Economy and Finance Minister Gabriel Oddone to Vice President and President of the General Assembly Carolina Cosse, and Speaker of the House Sebastián Valdomir.

The budget is built around three strategic priorities: accelerating growth to create quality jobs, strengthening the social safety net to reduce poverty and inequality, and enhancing security.

Oddone noted that Uruguay faces “the most restrictive fiscal framework since 1995,” with the goal of improving the fiscal balance by 1.5 percentage points of GDP and reaching primary balance by 2029.

The proposal foresees annual incremental allocations of US$ 140 million in 2026, US$ 180 million in 2027, US$ 210 million in 2028, and US$ 240 million in 2029.

Of this, 40% will go to programs for children and youth, 12–15% to security, 12% to healthcare, and 10% to social vulnerability.

An additional US$ 700 million annually is earmarked for infrastructure.

Government lawmakers from the ruling Broad Front coalition supported the bill.

Senator Mario Bergara described it as “a responsible budget that combines growth with social justice.”

Senator Liliam Kechichian highlighted the focus on children and youth, while cautioning that “the real challenge will be ensuring resources reach families effectively.”

Deputy Daniel Caggiani emphasized that the overall allocation — exceeding US$ 10 billion — represents “a significant step in a time of fiscal restrictions.”Opposition parties, however, criticized the plan.

National Party senator Sebastián Da Silva argued that “the budget promises more than it can
deliver” and raised concerns about rising public debt.

From the Colorado Party, former minister Adrián Peña stated that the bill “lacks concrete measures to stimulate private investment and generate productive employment.”

Cabildo Abierto leader Guido Manini Ríos added that “the distribution of resources favors some areas but does not sufficiently address security and national defense.

”The debate in the General Assembly will continue in the coming weeks, with intense negotiations and possible amendments before the final vote. As every five years, the national budget is set to dominate Uruguay’s political agenda.