BCR: Fiscal deficit remained at 2.4% of GDP in May 2023

Photo: ANDINA/Renato Pajuelo

19:00 | Lima, Jun. 27.

The fiscal deficit accumulated over the last 12 months until May 2023 stood at 2.4% of gross domestic product (GDP), similar to that of April and higher by 0.7 percentage points than the amount registered in December 2022, the Central Reserve Bank (BCR) reported on Tuesday.

According to the issuing entity, the non-financial public sector registered a deficit of S/409 million (about US$112 million) in May 2023, higher than that recorded in the same month of 2022, due to the decrease in current revenues and the increase in non-financial spending.

General government's current revenues decreased 3.9% year-on-year in May 2023 due to the 8.8% reduction in national government tax revenues. Non-tax revenues, which grew 10.6%, partially offset said decline.

Lower revenue

The Central Reserve Bank explained that, in general, lower income is observed in income tax filed by legal entities and sales tax on imports, as well as due to higher level of tax refunds.

Added to this is the decline in royalties, as well as in oil and gas canon, the issuing entity explained.

The BCR said the general government's non-financial spending increased 4.7% in May, particularly due to higher current spending at the three levels of government and other capital spendings.

Meanwhile, gross capital formation decreased 8% in May due to lower spending by local governments.

Greater execution by the national government and regional ones increased this variable by 5.4% in the first five-month period of 2023.

The non-financial public sector registered a surplus of S/8.561 billion (about US$2.355 billion) so far this year —lower than that registered in the same period of 2022. It had totaled S/15.589 billion (US$4.289 billion).

(END) NDP/SDD/MVB

Publicado: 27/6/2023