Colombia’s finance chief and other senior officials criticized their own government’s plans to overhaul the health care system, revealing a breach in the top ranks of President Gustavo Petro’s administration as it pursues an ambitious reform agenda during its first year in office.
(Bloomberg) — Colombia’s finance chief and other senior officials criticized their own government’s plans to overhaul the health care system, revealing a breach in the top ranks of President Gustavo Petro’s administration as it pursues an ambitious reform agenda during its first year in office.
The ministers of agriculture, education and the head of the national planning department, as well as Finance Minister Jose Antonio Ocampo, warned in a letter to the health minister that the cost of the measures will have significant fiscal costs not estimated in the bill. Petro confirmed on Twitter that the letter, which had been leaked to local media, was genuine.
The split will likely make it harder for Petro to pass his other reforms to Colombia’s welfare provision this year, including his plans to increase the role of the state in the pension system, and increase employee labor rights.
“With all of these difficulties, Petro is burning a lot of political capital,” said Andres Mejia, a political consultant who teaches at the business school of Bogota’s Los Andes University. “If this process ends up very battered, the other reforms will also be very battered.”
The ministers who signed the letter, particularly Ocampo, are viewed by many investors as a moderating influence on the government’s more zealous members. The disagreements over the health bill increases the risk that this group may eventually find it impossible to remain in the government, he said.
Petro’s proposals sent to congress this month seek to slash the role of private health insurers and make the government the main manager of the $15 billion-a-year health system.
In a statement on Monday, the Finance Ministry said the document leaked by Cambio magazine was part of an earlier discussion. The reforms will cost about 9 trillion pesos ($1.9 billion) in 2024, rising to 12.8 trillion pesos by 2033.
The ministry said the reform estimates “will be adjusted to the commitments with the fiscal consolidation, the adjustment of the external accounts and the macroeconomic stability.”
Read more: Petro’s Overhaul of Colombian Welfare State Faces First Big Test
If Petro can get the bill through, it will strengthen his position as he seeks to pass his pension system and labor bills ahead of local elections in October. A defeat, on the other hand, would weaken seven-month-old government, undermining its chances of getting the other reforms through.
–With assistance from Oscar Medina.
(Updates with Finance Ministry statement in 7th paragraph)
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