Andina

Peru: Transition Government committed to healthy public finances

Photo: ANDINA

Photo: ANDINA

09:12 | Lima, May. 13.

Peruvian Economy and Finance Minister Waldo Mendoza has affirmed that the Transition and Emergency Government is committed to leaving healthy public finances for the next administration, which will take office on July 28, 2021.

Within that framework, the Executive Branch will file unconstitutionality claims on the new Fonavi and collective bargaining laws recently approved by Congress, since Parliament does not rely on a spending initiative, he indicated.

"This Transition Government is committed to leaving healthy public finances on July 28. Last year, due to the crisis, collection fell substantially, while public spending rose sharply, and we had a fiscal deficit of 9% of gross domestic product (GDP). Thus, we got into debt for around US$18 billion," Mendoza explained.

"This year, the Transition and Emergency Government expects to complete its term in office with a fiscal deficit of 5% of GDP. We have reduced the fiscal deficit without neglecting our basic obligations, such as health (services), emergencies, and the purchase of vaccines," he added.

However, the Cabinet member warned that there are huge threats to public finances on the horizon, which will not be faced by the current administration, but by future ones.

"Supported by the Peruvian institutional framework, which works well, the Government is addressing the Constitutional Court to declare illegal two legislative initiatives that are highly expensive," Mendoza indicated.

"We are going to the Constitutional Court because we want to protect the country's future, its macroeconomic stability, and that the governments, which come forward, have some peace of mind to manage public finances," he added.

(END) CNA/MVB

Publicado: 13/5/2021