Public Spending

Honduras spent more than 1.05 billion lempiras (about $42 million) on pothole repairs, pavement rehabilitation, and maintenance of 2,702 kilometers of roads under a one-year road emergency decree declared in February 2026, with ten contractors handling 56 projects nationwide.

Honduras's budget execution stood at only 35% through mid-2026, according to watchdog ASJ, leaving shortfalls in medicines, school infrastructure, and other key services, though Finance Minister Emilio Hércules put the figure above 42%.

Obed García of the ASJ argues Honduras must streamline its 116 public institutions and reduce bureaucratic overhead to improve spending efficiency and remove regulatory barriers slowing investment.

Critics report that Honduras has spent 3 billion lempiras (roughly $120 million) on reforestation projects without measurable evidence of impact, raising questions about how public funds are being managed and overseen.

Honduras' external debt climbed to $9.3 billion as of March 2026, up 13.3% over two years, prompting the business council to urge the government to prioritize efficient public spending and curb excessive borrowing.

Economist Henry Rodríguez says Honduras's budget execution is tracking at only 32% through June due to delays in budget approval and cabinet formation, with 26.2% committed to salaries and 27% to debt service, leaving little room for public investment.

An analyst with Honduras's external-debt and development forum says poverty levels have remained flat over two decades despite spending more than 800 billion lempiras (roughly $32 billion) in anti-poverty programs, raising questions about where the money went.

A government commission liquidating ministries from the former Castro administration found contracts charging up to L70,000 (about $2,800) per broadcast minute, along with evidence of political spending and missing computer hard drives, sending its findings to the audit court and prosecutor.