Fiscal shortfall: Measures ordered by Peru's Ministry of Economy and Finance to “protect fiscal stability” | economy

One of the rules for the reactivation of the Peruvian economy Lack of funds It cannot exceed 2% of GDP by 2024. By the end of 2023, this indicator reached 2.8%, but in February of this year, the deficit rose to 3% of GDP. PPIIn an environment where tax revenues continue to decline (-7.2% in real terms) it shows an unexpected and weak recovery process.

Reducing fiscal deficit is critical to safeguard fiscal stability, which is one of the main pillars of the country, as it contributes to macroeconomic stability.“, points out Ministry of Economy and Finance (MEF) It considered the situation and issued an emergency decree, which, among other things, described the inappropriate costs it would curtail Public Sector (Article 5).

In this regard, its owner MEFJose Arista, with published standards, noted “Excessive expenditure has been curbed as not good for the public sector. [Algunos gastos son] Recruiting, fuel, festivals, travel. It has been reduced to a minimum, not eliminated, as there are important trips.

read more: MEF to cut unnecessary spending in public sector: “We're going to prune”

Cost control

  1. Charges for cellular telephony and cellular radio communication (digital trunked radio operation) may not be increased.
  2. Travel expenses within and outside the country and secondment of services of public sector officials and employees, besides expenses incurred by seconding services at the national level for activities within the framework of disaster risk management, implementation of better citizen service centers, social conflicts, costs of development or study of Bolivarian sports and collection of information Here And this Circumcisionand expenses for promotional activities of importance to Peru carried out by Promperú, the Ministry of Foreign Trade and Tourism, the Ministry of Foreign Affairs, the Private Investment Promotion Agency (Proinversión) and the Office of the President.
  3. Regarding the acquisition of uniforms and clothing, except for the army, police, National Penitentiary Institute (INPE), National Fire Service of Peru (INBP), doctors, nurses, people in charge of the Comprehensive Plan National Council. National Council for the Welfare of the Family (Inabif) and the Integration of Persons with Disabilities (Conadis).
  4. In terms of advertising, registrations, dissemination and corporate image, except for the costs of promotional activities of importance to Peru carried out by Promperú and the Ministry of Foreign Affairs.
  5. Cost of fuel consumption in each company. These rules do not apply to vehicles intended for the Ministry of Foreign Affairs and the protection of citizens, police operations, national security, health emergency care, disaster risk management, student transport, attention, care and protection of women, children and adolescents without parental care. or the risk of losing it, prevention of fire and accidents, tax inspection and investigation conducted by lawyers.
  6. Regarding seminars, workshops and entertainment and celebrations organized by the company.
  7. Regarding consultancy and similar activities carried out by natural and legal persons, excluding costs incurred by private investment promotion agencies (Investment) and by the Ministry of Foreign Affairs.
  8. In fiscal year 2024, national government agencies, regional governments and local governments, as well as Petroperu and Fonafe and their limited companies, are prohibited from acquiring motor vehicles, except for vehicles for security purposes. Citizen, National Security, Health Services, among others. The acquisition of the aforementioned motor vehicles is carried out with the resources of the company budget of the respective companies, by any financial source and in accordance with the current regulations, and can only be carried out with the prior authorization of the owner of the document. Resolution of said authority. It was published on the digital headquarters of the respective company.
  9. As regards the use of vehicles, it is established that the exclusive allocation of motor vehicles is for the official use of Ministers, Deputy Ministers, General Secretaries and Chief Secretaries of Ministries in respect of institutions of the Executive Branch. as well as Deputy Secretary and Secretary to the Council of Ministers in the Office of the President. For public corporations and other agencies of the executive branch it is limited to the official use of the head of the corporation; In the case of public universities, it is for the Rector's official use only; and, in the case of regional governments and local governments, it is for the official use of the regional governor and mayor respectively.
  10. In the case Petroperu S.AFonafe and the companies under its purview, the exclusive allocation of motor vehicles, are prioritized to carry out activities linked to their production process.
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He MEF pointed out that reducing Lack of funds It allows access to lower interest rates in international capital markets and a lower debt service charge burden, which makes it possible to have more space in the public budget for productive public expenditures (health, education, infrastructure, etc.).

It is better to approve extraordinary measures that allow us to establish savings in administration Public resources Consolidate higher balances generated by public institutions based on current expenditure FY 2023as well as other measures aimed at maintaining budget balance“, he stated in the emergency decree.

Resource exchange

He Ministry of Economy and Finance It has authorized the transfer of more than S/55 million items In support of local governments with high poverty and/or reduced balance sheets for 2023, not subject to the scope of the said national organization to finance the continuation of investments within the framework of the national multi-annual programming and investment management system and projects.

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