Peru has strengthened its capacity to respond to climate events such as El Niño phenomenon after reducing its rolling annual fiscal deficit to 1.3% of Gross Domestic Product (GDP) in June 2026,
This indicator declined from 2.1% of GDP in March to 1.9% in April, 1.6% in May, and 1.3% in June.
The latest figure is below the fiscal deficit targets of 1.8% of GDP for 2026 and 1.4% for 2027.
"Maintaining sound public finances is essential to safeguarding economic stability and responding promptly to the population's needs," Minister Acuña pointed out.
"In a context of favorable export prices, the fiscal strategy should be aimed at strengthening the country's fiscal position and restoring its capacity to respond to potential external shocks or natural events such as El Niño phenomenon," he added.
According to figures from the Central Reserve Bank (BCR), the improved fiscal result was supported by revenue growth that outpaced government spending.
In June alone, the General Government's current revenue increased by 23%, while non-financial expenditure rose by 2.4%.
Fiscal revenue in 2026's first half
In the cumulative January–June period, the General Government's fiscal revenue increased by 12.7% in real terms, supported by strong economic activity and high export prices, which helped boost tax revenue.
During the first half of the year, the Central Government's tax revenue increased by 13.2% in real terms.
Notable gains included third-category corporate income tax revenue, which increased by 31.3%, and domestic General Sales Tax revenue, which rose by 11.2%, reflecting strong business activity and consumer spending.
On the expenditure side, the General Government's non-financial spending increased by 5.2% in real terms during the same period, mainly due to higher current expenditure obligations.
In this context, the minister underscored the importance of containing the growth of rigid expenditure and directing available resources toward initiatives that deliver better public services and tangible results for citizens.
Minister Rodolfo Acuña also highlighted that public investment reached S/26.5 billion (about US$7.82 billion) between January and June 2026.
This figure surpassed the S/24.5 billion (about US$7.23 billion) recorded in the same period last year, standing well above the average observed over the past decade.
Challenge is to strengthen revenue
"The favorable conditions created by high commodity prices must be harnessed responsibly," the minister noted.
"The challenge is to strengthen permanent revenue, prevent temporary resources from financing rigid spending commitments, and prioritize high-quality public investment that helps close infrastructure and social gaps while contributing to the country's development," he added.
Thus, the Ministry of Economy and Finance (MEF) reaffirmed that preserving fiscal stability is vital to enable the Peruvian State to maintain essential public services, ensure the continuity of priority investments, and respond more promptly to emergencies without compromising public finances' sustainability.
Publicado: 17/7/2026