LatinNews Daily - 29 January 2026

*Guatemala’s 160-member unicameral legislature has voted to increase the country’s national budget by over Q9.326bn (US$1.22bn) in line with a request from the executive led by left-of-centre President Bernardo Arévalo. The move follows the decision at the end of last year by the constitutional court (CC) to temporarily suspend the 2026 budget based on alleged procedural issues. This meant that the 2025 budget – itself amended by various modifications last year, bringing spending up from Q148.5bn to Q154.8bn – was rolled over. The decision to increase the rolled over 2025 budget for 2026 was approved by 128 deputies and has been welcomed by the government which had warned that the CC’s decision would limit public investment. With the budget increase, the health ministry will receive an additional Q1.34bn, while the social development ministry will receive an extra Q1.32bn, and education, an additional Q1.06bn, among other ministries. It also makes available Q500m in funds assigned under the 2026 budget for the construction of a new maximum security prison designed to address overcrowding and other issues exposed by a high-profile prison break in late 2025 which sparked a crisis for the government.

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