A 15.3% increase in public investment, in accordance with the General Budget of the Republic for the Fiscal Year 2016, will help to dynamize the private sector capital, the Lima Chamber of Commerce (CCL) affirmed.
"Public investment will help to dynamize private investment, which accounts for 21% of gross domestic product (GDP), for example through projects, which could be executed thanks to Work for Taxes, Public-Private Partnerships (PPP) and works the government itself has to execute, as are the El Niño climate phenomenon prevention-related [...],” it indicated.
According to Finance Minister Alonso Segura, public investment will increase by 15.3% next year and thus become one of the main engines for growth in 2016.
The Finance Ministry-issued Multiannual Macroeconomic Framework (MMM) 2016-2018 affirmed the PPP modality will become a "priority" to boost GDP growth.
On the other hand, CCL’s Institute of Economics and Business Development Executive Director Cesar Peñaranda highlighted the fact that the bill prioritizes social investment.
The Public Sector Budget Bill for 2016 allocates funds worth S/.138.4 billion (about US$ 42.7 billion) for next year, 6.6% up compared to the opening budget for 2015.