The legislative powers recently granted to the Executive Branch by Congress will increase the general government's structural revenue by at least 1% of GDP, Economy and Finance Minister Carlos Oliva projected.
According to the official, these measures are mainly aimed at reducing tax evasion and avoidance in the Inca country.
"The
(legislative) powers have already been approved. Tomorrow (today), the 60-day period we have to implement them starts, and we have developed some measures we believe will increase the general government's structural revenue, hopefully, by at least 1% of GDP," he told El Peruano official newspaper.
"Thus, there is a (positive) impact that we expect to be materialized by 2019 or 2020 thanks to the measures we are going to implement in the coming weeks," he added.
Enactment
As is known, the Executive Branch on Thursday enacted the Law N°30823 that grants it special powers to legislate on three key areas: tax and financial matters;
economic management and competitiveness; and State modernization.
It is worth mentioning the
Inca country's GDP reached S/702 billion (about US$214.220 billion) in 2017.
Moreover, Oliva pointed out these powers will contribute to reducing
Peru's fiscal deficit, which currently stands at 2.2% of GDP.
Forecast
On the other hand, the cabinet member noted the
country's fiscal deficit is very likely to close this year below the 3.5% limit since "we are much better" than what was projected last year.
"It is very likely that we will close this year with a fiscal deficit (…) below this ceiling, at around 3% of GDP, perhaps a little less," he remarked.
Oliva went on to add the purpose is to pursue a deficit reduction path to 1% by 2021.
(END) DOP/MDV/JAA/MVB
Published: 7/20/2018