Economy Minister’s reaction to CF is wrong | Alex Contreras | MEF | Finance Council | Carlos Oliva | Comment

Although many citizens do not know or have never heard of it Council of Finance (CF), the role it plays in overseeing our finances is healthy. Created over a decade ago, the CF acts as a technical and autonomous commission that monitors financial policies, their stability in the economic cycle and their stability and dissemination through reports serving risk assessment institutions. Economic analysts to ascertain whether the country’s public accounts are managed in a responsible and coherent manner.

Headed by the Ministry of Economy and Finance (MEF), Alex ContrerasHowever, the observations made CF He did not like one of his recent decisions and chose to be harshly critical of the company and especially its chairman, the former economy minister. Carlos Oliva.

The genesis of this disagreement can be seen at the end of November, in the issuance of Emergency Decree 039-2023, which allowed the advance payment of S/1,000 million of profits from the Banco de la Nación to the public treasury; An amount due only in 2024. Interviewed by “Management”. A few days later, the minister justified the move with the need to comply with the fiscal rule. “I am sure that we are going to meet 2.4% (fiscal deficit of GDP) and if we see any deviation, we are going to take action,” he said.

The Chairman questioned this announcement CF In the interview “Economic Week” Last week, he said such actions would affect the film MEF. To the Minister ContrerasA review of Oliva Gone too far; He accused “such mild statements” of adopting a “political attitude” and announced that he would send a letter. CF “Demands relevant explanations.” “Citizens have the right to ask for discretion from the President, just as discretion is required when speaking to the Finance Minister. Finance Council “When it addresses critical issues that can affect the credibility of the country,” he pointed out.

But what is critical about this entire episode is the cabinet member’s reaction and form as well as substance. Regarding the form, as mentioned above, the CF It issues unrestrained opinions that may or may not be heard by the authorities, but in no way should they be ignored or, as in this case, suggest that subordinate interests hide behind them. That’s not bad CF to attract attention MEF When you consider it necessary; Indeed, it is their duty and precisely what is needed in a country where the commitment of the authorities (of all kinds) to fiscal policies is often desirable. If he CF Cannot attract attention MEF Or it will remain silent for fear of disturbing its owner, and then there is no point in continuing to act.

The minister has a problem ContrerasAnd that’s not all in this particular case CF (He defended the reports yesterday Oliva In a statement), but many experts have questioned the decision to make advance payments for the profits of the Banco de la Nación and have described it as a decorative maneuver to force compliance with the financial rule, which, in addition, will be carried out irregularly, since it should have been ordered by law, not by an emergency decree. As former Economy Minister Luis Miguel Castilla noted, “dressing one saint in another’s clothes” is about fulfilling his mission – like a bad student – to fulfill his mission. Respect the sense of ethics.

So the minister will be fine Contreras Being a little more accepting of the advice you might be given and not taking it defensively. The situation in the country is already too alarming to have officials who do not listen to any recommendations or criticisms.