Andina

PM: Peru is in solid fiscal position to face COVID-19 related crisis

12:53 | Lima, May. 28.

Peru is in a solid fiscal position, which has allowed it to use international reserves to alleviate citizens' economic needs generated by the economic crisis caused by the COVID-19 pandemic, Prime Minister Vicente Zeballos affirmed on Thursday.

During his presentation before the Congress of the Republic, the high-ranking official stressed that the country's macroeconomic situation is not free.

"It is due to decades of efforts undertaken by citizens, who had the necessary maturity to respect the principle of budgetary balance, even at the cost of legitimate individual expectations, with the result that we are exhibiting today of being one of the most stable economies in the region," he emphasized.

Prime Minister Zeballos added that the government decided to face this task and —following the principle of budgetary balance— guided the issuance of Urgency Decree No. 014-2020, which regulates general provisions necessary for collective negotiations in the public sector, in strict application of the Constitutional Court's mandate.

"We consider that the present situation, in which public resources must be cared for in the common interest, best exemplifies why it is vital to safeguard the principle of budgetary balance, while continuing to attend to increases in the public sector that may be set," he stressed.

This decree seeks to balance the State payroll and improve the income of public servants in exchange for greater productivity and efficiency in spending.

It also aims to prevent conflicts, insofar as it regulates a legitimate way to agree on economic and non-economic conditions, without jeopardizing the State's budget viability.

"We have taken the first step, and we believe that Congress will complete the task of perfecting this instrument so that public sector workers can properly exercise their rights," he said.

Remarks were made at a Congress session to request the confidence vote. 

On this occasion, the President of the Council of Ministers arrived at Congress joined by Cabinet members to report on the actions of the Executive Branch and present the government's general policy.


(END) SDD/JJN/MVB

Published: 5/28/2020