On September 2, the Public Finance Ministry (MinFin) presented the 2006 General Budget to Congress, with a 11.1% increase from Q32,385.2 million (US$4,261.2 million) to Q35,984.0 million (US$4,734.7 million) on the 2005 approved budget. However, despite the nominal increase in expenditure and considering the expected inflation rate and economic growth for 2006, as a percentage of Gross Domestic Product (GDP) public spending will remain at 13.9%. As for taxes, the government does not contemplate any changes, preferring to turn to foreign financing to fund public spending. Tax revenue will therefore remain at 10% of GDP, far from the 12% target established in the 1996 Peace Accords. With regards to the ministries and other State institutions, there are winners and losers: the Comptroller General will receive the highest budget increase of 28.2%. While the Human Rights Ombudsman's Office continues to suffer from a shortage of funds, the Ministry of Defence's budget will increase 11%. Analysts consulted by CAR expressed concern at the government's increasing reliance on foreign debt (CAR XXXII, 36).

Few people will admit to a polarization of powers at the Universidad Nacional Autónoma de Honduras (UNAH) which has prevented any firm action being taken to finalize the Fourth University Reform -despite the creation of a Technical Commission and more recently the Transition Commission which were hoped to have brought new impetus to the process. Antonio Núñez, member of the Technical Commission, maintains that no one in their right mind would say they are against the reform. However, he did recognize that over the past four years of the process, there has been active opposition from certain sectors who are afraid of the proposed changes. Those opposed fear that the reforms will result in layoffs and have called for an internal audit.

The percentage of elderly Guatemalans (currently 6.6% of the population), is increasing due to a rise in life expectancy and a reduction in the birth rate. According to the United Nations Human 2005 Development Report, life expectancy for Guatemalans is 67 years, while the birth rate has fallen 1.6% in the past 25 years. This demographic change comes within a context of continuing poverty, inequality, inadequate social security coverage and the absence of State support for the elderly. Senior citizens also find it increasingly difficult to adapt to society due to the pressures of a western modern culture that tends to denigrate tradition.

On September 3, the government raised fuel prices by 15%, blaming the increase on the effects of Hurricane Katrina in the US (CAR XXXII, 36). The move prompted protests from taxi drivers which later spread to other sectors and, after ten days of stalemate, Congress reinstated the previous price. Subsequently, an official Commission was appointed to investigate the structure of gas pricing and whether the price hikes were in fact meant to favor large gas importers.

In one year, the prices of 241 goods and services have increased by an average of US$26, largely due to the rise in oil prices. Over the past 18 months, the price of a barrel of crude oil has risen spectacularly and now stands at around US$70, in line with global trends. As a result, alternative energy sources are being sought including, with Finnish aid, the production of bio-diesel.