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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.

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.