The Executive Branch has enacted the Public Sector Budget, Financial Balance, and Indebtedness Laws for the Fiscal Year 2026, which had previously been approved by the Congress of the Republic.
Through Law No. 32513, published Thursday in the Official Gazette El Peruano, the Public Sector Budget Law for Fiscal Year 2026 was issued, totaling S/257.562 billion (US$76.428 billion).
Of this amount, S/164.223 billion (US$48.731 billion) correspond to the national government, S/59.164 billion (US$17.556 billion) to regional governments, and S/35.795 billion (US$10.622 billion) to local governments, strengthening the capacity to execute public works and investments across the country.
The government highlighted the budget's decentralized approach and the inclusion of proposals from parliamentary groups and regions.
Key approved modifications include the allocation of resources to strengthen the State-run Private Investment Promotion Agency (ProInversion), financing investment profiles with canon and over-canon, and adjustments to the Municipal Compensaion Fund (Foncomun) for better distribution.
It also features provisions linked to the framework of the program to reduce illegal crops, authorization to carry out investments in public higher education, and the continuation of funding for strategic projects such as the Peripheral Ring Road and the Huancayo–Huancavelica railway.
Additionally, the Public Sector Budget Law for Fiscal Year 2026 authorizes the education sector to make necessary budgetary adjustments to fund the sustainability of scholarships already awarded and those to be granted in 2026 by the National Scholarship and Educational Credit Program (Pronabec).
Likewise, bonuses and allocations were approved for sectors such as health, justice, and the National Penitentiary Institute (INPE); measures for the progressive transfer of pensions under Legislative Decree No. 25330 to the Pension Normalization Office (ONP); and guidelines to ensure transparency and continuity in the 2026 general election processes.
The Financial Balance Law of the Public Sector Budget for Fiscal Year 2026 (Law No. 32514) and the Public Sector Indebtedness Law for Fiscal Year 2026 (Law No. 32515) were also published.