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Peru: Economic Stimulus Plan to boost public investment

LIMA,PERÚ-MARZO 09. Conferencia de prensa de los Ministros de Estado en Pcm Foto: ANDINA/Vidal Tarqui

LIMA,PERÚ-MARZO 09. Conferencia de prensa de los Ministros de Estado en Pcm Foto: ANDINA/Vidal Tarqui

14:47 | Lima, Mar. 9.

Economy and Finance Minister Alfredo Thorne presented today the Economic Stimulus Plan, comprised of six key measures, to create 150,000 new jobs over the next 12 months and post a GDP growth rate of over 4% this year.

"We want to ensure a strong growth, of more than 4% this year, with six measures aimed at creating 150,000 additional jobs in 12 months," Economy and Finance Ministry (MEF) head was quoted as saying.

Social housing boom

Thorne affirmed 150,000 homes will be built under Techo Propio's Vivienda Nueva (Own Roof's New Housing) program.

"We expect to erect 15,000 homes under this program in 2017," he anticipated.

In this sense, he projected public investment will grow 15% compared to last year.

Fiscal impulse

The minister noted a new fiscal impulse of S/5.5 billion (about US$1.66 billion), which constitutes additional resources available.

Resources will be used to finance public works or their maintenance.

Joined by Prime Minister Fernando Zavala and other economic activity-related ministers, Thorne indicated S/4.5 billion (about US$1.36 billion) will be allocated to regional and local governments. 

Thorne explained 75% of this sum will be spent on new investment projects, while the remaining 25% will be allocated for maintenance, mainly in weather-hit regions.

Foniprel resources

The government official foresaw the possibility to use Foniprel resources as part of the US$1.66 billion fiscal impulse.

So, 30% of competitive funds will be allocated to regional governments and 70% to local governments seeking funds for construction and infrastructure maintenance.

"This way, lower-income local governments will have fewer co-financing needs," he stated.

(END) JJN/JJN/RMB/MVB

Published: 3/9/2017
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