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Peru: Reactivation measures approved as of May total US$32.17 billion

Foto: Congreso

13:37 | Lima, Jun. 2.

Peru's Economy and Finance Minister Maria Antonieta on Tuesday reported that the measures approved to combat the COVID-19 pandemic until May 31 totaled S/110.089 billion (about US$32.171 billion), which represented 14.5% of GDP.

During her virtual presentation before Congress' COVID-19 Emergency Monitoring and Disaster Risk Management Commission, the high-ranking official recalled that the containment and reactivation plan approved by the Government accounts for a 17% boost of GDP (worth over S/120 billion = over US$35.067 billion).

"The remaining space will be used basically for the reactivation stage (...) the fiscal prudence applied by the governments over the last three decades allows us to execute the most ambitious plan in the region," she said.

Likewise, the Cabinet member specified that the approved measures are grouped into three instruments: tax actions, expense actions, and other instruments.

Within this framework, Minister Alva explained that the plan executed until May 31 was based on four axes: emergency care (S/2.754 billion = US$805 million), support for families (S/22.426 billion = US$6.553 billion), support for companies (S/12.608 billion = US$3.684 billion), as well as support for the payment chain and the economy (S/72.301 billion = US$21.128 billion)

Furthermore, the government official pointed out that S/1.872 billion (about US$547 million) was executed for the strengthening of health services (Emergency Response Axis) through a bonus for: health personnel; improvement of hospitals infrastructure, laboratories, and others; as well as acquisition of tests.

It included strengthening of the emergency line, funeral services, as well as the implementation of care and isolation centers.

Moreover, S/607 million (about US$177 million) was spent on public order and the transfer of humanitarian aid through a bonus for law enforcement personnel, repatriation of fellow citizens, accommodation and food provision during isolation (14 days), transfer to the country's interior regions, accommodation and food provision during isolation (14 days).

The funds were invested in temporary shelters for vulnerable citizens; acquisition of PPE for members of the police, military and others; supervision of medicine prices by the State-run National Institute for the Defense of Competition and Protection of Intellectual Property (Indecopi).

Minister Alva also reported that S/6.085 billion (about US$1.778 billion) has been allocated for subsidies to vulnerable families and support to independent workers, who are included in the Support for Families Axis.

The presentation took place within the framework of a mandatory social isolation imposed to prevent the COVID-19 from further spreading in the South American country.

Initially set to last from March 16 to 30, the social isolation measure was extended until June 30.

(END) RGP/JJN/MVB

Published: 6/2/2020

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Peru: Reactivation measures approved as of May total US$32.17 billion

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