Prime Minister Pedro Cateriano on Monday affirmed that —once the COVID-19 crisis is over— Peru will remain one of the countries with the
and the lowest debt in the region.
"Once the crisis is over, and in accordance with the country's long history of fiscal responsibility, it is essential to establish an orderly, gradual and credible consolidation process for the non-financial public sector's fiscal deficit, which will allow preserving the sustainability of public finances," he expressed.
The high-ranking official affirmed that this consolidation trajectory foresees an increase in permanent tax revenues that allows for a moderate expansion of public spending, so that an adequate provision of public goods and services remains in place.
Fiscal rules
Furthermore, the Prime Minister indicated that —in the current context characterized by high uncertainty— fiscal rules were exceptionally and temporarily suspended in response to the health and
economic crises caused by COVID-19.
"Thus, once the pandemic has been overcome, the public finances management will aim to drive fiscal aggregates towards a path of sustainability in the medium term," he stated.
Therefore, he said, it should be noted that the expected fiscal path will consider the dissipation of the transitory measures approved in the context of the crisis.