The fiscal deficit accounted for 2.5% of
GDP in 2018, 0.6 percentage points lower than the previous year, Peru's Central Reserve Bank (BCR) reported Friday.
"This evolution was explained by the significant increase in tax revenues —mainly due to higher income tax (IR) and
general sales tax (IGV) ones— rising from 13.4% to 14.5% of GDP," the issuing entity indicated.
In 2018, the non-financial public sector recorded an economic deficit of S/18.184 billion (about US$5.455 million), down by S/3.549 billion (about US$1.064 billion) from the year earlier.
Central Government's current revenues grew 13% (S/142.938 billion or US$42.885 billion) over 2017, mainly reflecting an improvement in tax collection (14.7%).
Higher income tax and general sales tax revenues stood out in the analyzed period.
Central Government's non-financial expenses expanded 7.3% (S/150.756 billion or US$45.231) compared to 2017.
Such expansion occurred at all three levels of government: national (4.4%), regional (8.7%) and local (16.4%).
Plus, it was a result of increased current expenditure (6.6%) and gross capital formation (15%).
In December 2018, the non-financial public sector recorded an economic deficit of S/10.947 billion (about US$3.284 billion), up by S/1.955 billion (around US$586 million) from the same month in 2017.
Said performance was primarily explained by Central Government's lower tax revenues (10.5%).
On the other hand, Central Government's non-financial expenses rose 1.5% from the same month in 2017.
(END) MDV/MDV/RMB/MVB
Published: 1/18/2019