The annual fiscal deficit remained at 1% of gross domestic product (GDP) in August 2026, the same rate recorded in the previous month, according to preliminary information obtained from the
This maintains the downward trend in this indicator.
Furthermore, it is the lowest rate recorded since June 2022, when the fiscal deficit stood at 1% of GDP.
The BCR explained that this result as of August was due to a reduction in non-financial expenditures as a percentage of GDP, which was offset by interest service on domestic debt.
Improved performance
The monetary authority specified that the non-financial public sector recorded a deficit of S/4.076 billion (about US$1.183 billion) in August 2026, slightly higher than that registered in August 2025.
This was due to higher interest service on debt and non-financial expenditures, partially offset by higher tax revenues.
Meanwhile, in the January–August 2026 period, the fiscal surplus would have amounted to S/5.546 billion (about US$1.609 billion), contrasting with the deficit recorded in the same period of 2025, which totaled S/7.323 billion (about US$2.125 billion).
Current revenues
The BCR also reported that general government current revenues grew 13.1% year on year in August 2026, driven by higher tax revenues, particularly increased collections from income tax, the General Sales Tax (IGV), the Selective Consumption Tax (ISC), and the Special Mining Tax (IEM), as well as lower tax refunds.
The BCR stated that non-tax revenues fell, mainly due to a lower transfer of profits from a financial institution to the Public Treasury.
It detailed that general government non-financial expenditure increased 8.4% year on year in August 2026 across all three levels of government.
By expenditure category, current expenditure expanded mainly due to an increase in wages and transfers.
Meanwhile, capital expenditure declined due to lower other capital expenditures, reflecting lower spending on the honoring of guarantees for the State-owned Petroperu, partially offset by higher gross fixed capital formation, particularly by subnational governments.