The Public Sector Budget for 2025, included in the bill approved by the Council of Ministers for submission to Congress, was increased by 4.5% compared to the one approved last year. It is characterized by its decentralized approach and prioritization of capital expenditures,
Minister Arista said the Executive Branch has until August 30 to submit the Public Sector Budget Bill for the following year to Congress. Therefore, this bill was approved on Wednesday by the Council of Ministers. It will be sent to the Legislative Branch today at the latest.
"I will outline some of the main features of this bill. First of all, it assumes —something we all acknowledge— that the fiscal deficit with which this bill is being prepared is 2.2% of GDP," Arista said.
"The budget proposal for next year shows a 4.5% increase. If we compare it with the one from last year, the growth rate was 12%," he emphasized.
In this regard, Minister Arista underlined that this budget bill is much more realistic and aligns better with Peru's economic growth.
"The economy has been growing at a rate of 3.2%, which is precisely the basis for this budget; for next year (we assume) a growth rate of 3% and an inflation rate between 2.7% and 3%," he added.
Secondly, Minister Arista said that no regional or local government will receive an amount lower than that approved in 2023.
"We have made a huge effort to respect last year's budget levels. The same approach will apply to the various budgetary allocations within the Executive Branch, thus meaning the ministries," he indicated.
Thirdly, Arista indicated that capital expenditures are prioritized, mainly for regional and local governments.
For example, capital expenditures increase by 7.3% in the case of regional governments, while for local governments, they grow by 24.2%.