(Adds details on budget cuts)
BOGOTA, Nov 9 (Reuters) - Colombia’s government has reduced its budget for this year by an additional 3 trillion pesos ($1.03 billion), bringing total cuts to 9 trillion pesos, President Juan Manual Santos said on Monday, as low oil prices crimp government finances.
The decision was a “demonstration of the fiscal discipline the entire government is committed to,” Santos said.
The cuts will come from savings in pension costs, national budget director Fernando Jimenez told Reuters, since an increase in income at the public pension fund has reduced the contribution needed from the national government this year.
The Andean country has a budget of 210.6 trillion pesos for this year.
Congress approved a slight budget increase for 2016, to 215.9 trillion pesos, but reduced investment in some sectors because of low prices for crude, Colombia’s biggest export and leading source of foreign exchange.
$1 = 2,896.19 Colombian pesos Reporting by Monica Garcia; Writing by Julia Symmes Cobb; Editing by Lisa Shumaker and Tom Brown