National Budget 2025‑2029: A Step Towards the Future or a Burden for the Country?

From Montevideo

On October 16, 2025, Uruguay’s Chamber of Representatives approved the National Budget for the period 2025‑2029 after an extensive 18-hour session. This law, which sets the fiscal and economic framework for the country for the next five years, has sparked widespread debate about its feasibility and the consequences it may have for Uruguay’s future.

An Optimistic Budget in Uncertain Times

The government has presented this budget as a tool to boost economic growth and reduce inequalities. However, the revenue and expenditure projections seem to be based on optimistic assumptions that may not materialize. The reliance on external sources of financing and the increase in public debt are concerns that have not been adequately addressed.

Regional Inequality and Lack of Investment in Infrastructure

Despite promises of decentralization, the budget shows a concentration of resources in urban areas, leaving the country’s interior regions with insufficient investments. This lack of attention to less favored areas could deepen existing inequalities and hinder the country’s equitable development.

Risks to Public Services and Quality of Life

The budget contemplates adjustments in public spending that could affect the quality of essential services such as education, healthcare, and security. The lack of clarity on how these adjustments will be implemented creates uncertainty about the impact they will have on citizens’ daily lives.

An Uncertain Future: Where Is Uruguay Heading?

While the budget sets ambitious goals, the lack of a clear and realistic plan to achieve them leaves the question of the country’s direction up in the air. The absence of structural reforms and reliance on external variables make Uruguay’s economic future uncertain.

In conclusion, although the approved budget aims to project an image of stability and development, it lacks concrete solutions for critical structural problems: it does not ensure sufficient investment in infrastructure, fails to address regional inequality, relies on optimistic revenue assumptions and external debt, and does not guarantee the sustainability of essential public services. Without deep reforms and a rigorous implementation plan, this budget risks becoming a symbolic document, suitable for political headlines but insufficient to tackle the country’s real challenges and improve the lives of Uruguayans.