The Colombian government made news earlier this week when
Colombian President Juan Manuel Santos announced
an additional 3% cut to the government’s budget this year because of the
collapse in global oil prices. Oil used to account for 20% of the Colombian
government’s revenue, so the government has had to tighten
its belt in order to adapt to the new economic reality.
Surprisingly, the Colombian defense and finance ministries
will bear
the brunt of the budget cuts, though the Colombian government stressed that
financing for police and military operations will not be touched. El Espectador
also noticed that this is the third round of budget cuts, after two rounds of
cuts made last year, and it might not be the last.
In oil-related news, the Colombian Constitutional Court ordered
the suspension of Canadian oil company Pacific E&P’s oil exploration activities
in the Quifa oil field in Colombia’s Meta Department. The Court ruled that the
oil company infringed on a local indigenous group’s right to prior
consultation. The report noted that things are not going well for Pacific
E&P, as the oil company is also scheduled to hand over its highly profitable
Rubiales oil field after the first half of this year.
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