Guatemala's legislature on Monday backed away from approving a business-friendly 2021 budget after demonstrators in the Central American nation torched the Congress building and demanded the resignation of President Alejandro Giammattei in weekend protests.

A lack of resources for battling the coronavirus pandemic as well as anger over the new spending plan has fueled widespread indignation against Giammattei's administration and Congress.

"In order to maintain the governability of the country and social peace, we have agreed to suspend the processing of the budget," said Congress president Allan Rodriguez.

The suspension would create "space for discussion of the country's governance," he said.

Guatemala's only state-run university, the University of San Carlos, had earlier called for a national strike on Monday.

Congress, dominated by conservative pro-government parties, last week approved an almost $13 billion budget, the largest in the country's history.

With the suspension, lawmakers now have until November 30 to approve a new budget, otherwise the government will continue to operate under the existing budget of $10.4 billion.

Thousands of Guatemalans took part in a peaceful demonstration in the capital on Saturday, but hundreds broke away and partly burned the Congress building, setting fire to several offices after smashing windows to get inside.

Hundreds of people returned to the streets on Sunday to demand Giammattei's resignation.

Rodriguez accused the protesters of using the budget as a pretext to commit "terrorist acts" aimed at "breaking the constitutional order and gaining access to power."

People who were detained during a protest demanding the resignation of Guatemalan President Alejandro Giammattei, pictured in a cell in Guatemala City, November 2020 People who were detained during a protest demanding the resignation of Guatemalan President Alejandro Giammattei, pictured in a cell in Guatemala City, November 2020 Photo: AFP / Johan ORDONEZ

The Congress speaker said he would ask Attorney General Consuelo Porras to appoint a special prosecutor to investigate the attack on the Congress building, pledging that those responsible would face justice.

Giammattei, 64, issued a statement Sunday afternoon reproaching Saturday's violent demonstrations, saying he considered the protesters to be "minority groups that seek to force a true coup d'etat."

The protesters are angry that most of the budget has been allocated to infrastructure tied to big business, while more than half of Guatemala's 17 million residents live in poverty and half of all children under the age of five are malnourished.

"The government started work in an arbitrary way and the demonstrations on Saturday show the feelings of the people, who are already tired of how the country is being run," Edie Cux, country director of Transparency International, told AFP.

He described the budget as "the last straw."

Meanwhile, the group of 13 donor countries and organizations -- including the United States, the United Nations, France, Germany and Britain -- expressed concern over the crisis and called for dialogue to seek a solution.

Giammattei's vice president Guillermo Castillo, with whom he has repeatedly clashed, said Friday night he had asked the president to resign with him "for the good of the country."

Castillo asked the public prosecutor's office on Sunday to investigate the burning of the Congress building as well as police repression of the protests, in which dozens of people were injured in clashes.

A former prisons chief, Giammattei took office in January but his management of the health crisis has been criticized by Castillo, the opposition and social sectors.

All have denounced deficiencies in the hospital system as well as in taking care of groups affected by lockdowns aimed at slowing the spread of the novel coronavirus.

Congress approved $3.8 billion to fight the pandemic, but less than 15 percent of those funds have been invested.

Guatemala has recorded nearly 120,000 cases of the virus and more than 4,000 deaths.