PERU

On November 23, the Budget Committee approved the opinion required to pass the draft Budget of the public sector for fiscal year 2021. The initiative indicates that the budget will amount to 183.029 million soles (approximately 50 billion dollars). The Debt and Financial Balance draft bills for fiscal year 2021 were also approved. The initiatives could be discussed in a plenary session on Friday November 27.

During the session, Economy Minister  Waldo Mendoza stated that the budget was drawn up to tackle the national situation. Mendoza stated that the money should be distributed “appropriately” as State revenues had fallen. 

He pointed out that it is necessary to “strengthen capital” for the country, as well try and shore up the economy. Mendoza explained that public investment in the country has fallen by 73% in the months of April, May and June, but that it is “slowly emerging from that crisis as time goes by.”

On the other hand, the Financial Equilibrium bill aims to determine the financing sources for the budget and their distribution throughout the three levels of government (national, regional and local); in addition, it establishes various measures to avoid creating budget deficits and inflationary pressures.

Committee chairman César Combina (APP), pointed out the importance of approving this initiative with the aim of providing “assurance to the markets, ensuring the continuity of the programs and guaranteeing work at all levels of government.”