The Minister of Economy and Finance, Pedro Francke, affirmed today that Peru will register the largest reduction in the fiscal deficit in Latin America this year, which shows the great effort made to promote the recovery of the Peruvian economy.
“The reduction in the fiscal deficit this year will be the highest recorded in Latin America. Practically no country in the region is reducing its fiscal deficit by almost five points of gross domestic product (GDP) in one year as Peru does,” he said during its presentation before the joint session of the Constitution and Budget commissions of the Congress of the Republic.
Francke specified that neither Chile, Colombia, Argentina, Brazil have achieved results of this type. “Peru will reduce its fiscal deficit by 4.9% of GDP this year.”
He assured that these results imply that 16,000 million soles have been allocated to this objective, so it cannot be said that the Government has neglected the fiscal deficit.
“This is a major effort. We have managed to have tax revenues that have allowed us to achieve significant objectives at the same time, something that can usually be contradictory, but we have succeeded. Now, the budget includes resources to increase public investment, attend to common pots, buy vaccines and reduce the fiscal deficit, “he said.
Recovery and urgency
The head of the MEF commented that it is not contradictory to affirm that there is an important economic recovery, but that there are also emergencies to attend to.
“We have recovered 300,000 jobs, but there is also an urgency in popular economies to improve. The economy will grow 12% this year, it may not be enough, as we still have an acute unemployment crisis. For this reason, it is necessary to put a lot of emphasis on economic reactivation with various measures, but also with other initiatives such as the request for legislative powers in tax matters, ”said Francke.
The Minister of Economy and Finance participated in the session of the parliamentary working groups regarding the relevance and constitutionality of the Emergency Decree 086-2021, which establishes extraordinary measures for the financing of the major expenses in the framework of the health emergency and economic reactivation.
Likewise, he explained the framework of the Emergency Decree 100-2021 that establishes extraordinary measures to promote greater public spending through financing for the execution of investments and other expenses in order to contribute to the economic reactivation.
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