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Lima.- The Minister of Economy and Finance of Peru, Rodolfo Acuña, stated this Tuesday that “Congress must be more cautious” with the fiscal spending laws approved in recent months, which represent almost 3% of the gross domestic product, because if “graduality” is not applied in their execution, “there is no fiscal treasury that can support it“.
n” “nAfter attending the Budget Commission in Parliament, Acuña told reporters that legislators are demanding the Executive branch address pension increases for teachers, which represents an expenditure of 10 billion soles (3 billion dollars).
n” “nLikewise, the payment of bonuses and compensation for length of service for temporary public workers, under the Administrative Service Contract (CAS) category, exclusive to the public sector, for 3.5 billion soles (1 billion dollars).
n” “nHowever, Acuña said that those payments put the Executive branch in “a problem“. “Where do we get that money from?“, he asked.
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The minister pointed out that the focus of the interim government of José María Balcázar, which concludes on July 28, is to address urgent issues such as prevention ahead of the arrival of the El Niño weather phenomenon, for which it has allocated a budget of 300 million soles (88 million dollars).
“Perhaps more resources will be allocated, but we are doing what can be done“, admitted Acuña, given that the effects of the phenomenon, such as heavy rains and floods, will be felt in the coming months and until the beginning of 2027.
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n” “nThe Ministry of Economy of Peru reported, last week, that it is managing an additional contingent credit line of 500 million dollars to strengthen the response to natural disasters or the effects of the El Niño phenomenon.
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In turn, the president of the Congressional Budget Committee, Alejandro Soto, stated to reporters that the Ministry of Economy has proposed a supplementary credit of 4.16 billion soles (1.2 billion dollars), which are funds collected through taxes, to cover issues related to the El Niño phenomenon and the bonuses (extra pay) for CAS workers.
n” “nSoto said that the Executive has more than 8 billion soles (2.3 billion dollars) available for contingency issues and that the law approved by Parliament provides for the payment of 100% of the bonuses for those public sector workers.
n” “nLast May, the president of the Fiscal Council, Alonso Segura, commented that the current Congress approved 268 regulations with a negative fiscal impact between 2021 and 2026, which represent permanent commitments of more than 36.7 billion soles (10.7 billion dollars) annually, representing about 3% of GDP.
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