Less than a year after Government and less than two months of the deadline to approve the 2026 budget (November 30), everything indicates that the Congress I would leave an economic time bomb to the next administration. And there are more than S/12,000 million cost by legislative initiatives that have not taken into account the public spendingbut the easy applause to try to win votes in the general elections of next year.
One of those proposals is the one that establishes a 3,300 S/3,300 pension for retired and unemployed teachers, whose cost could exceed S/7,395 million, according to estimates by the Ministry of Economy and Finance (MEF). Currently, the proposal is already in autograph and includes retired teachers who belong to the decrees of 1990 and 20530 laws, and in Law 29944, as well as for those who are affiliated with the private pension system, based on the monthly full remuneration.
Although the project can be taken as a measure of justice for teachers, an observation that is made, in addition to the cost, is that in the case of those who are affiliated with the National Pension System, they would show increases that other pensioners will not have, which could be taken as a discriminatory measure.
Another initiative that has also generated alarms is what proposes to grant labor rights to workers hired under Legislative Decree 1057: Administrative Services Contract (CAS). Here there is gratification for national holidays, Christmas and compensation for time of services (CTS). The cost of all this would exceed S/2,690 million.
According to the Directorate of Active Personnel Management (DGPA), a measure of this type weakens the implementation actions of the Labor Regime of the Civil Service Law. Currently, the initiative is pending second vote, although the president of Congress, José Jerí, after a meeting with leaders of the General Confederation of Workers of Peru, has already reported that it would be seen this month.
On the other hand, there is the bill 09040/2024-CR, which proposes to authorize the progressive and continuous appointment of professionals, technicians and assistance assistants of the health of the Ministry of Health. The fiscal impact of this measure exceeds S/792 million.
There is also the 10041/2024-CR project, which incorporates the workers of the Judiciary who work as CAS to the Labor Regime of Legislative Decree 728. This would cost Peru more than S/472 million. Something similar generates the proposal 10815/2024-CR, but for Sunat officials. In the latter the value exceeds S/207 million.
In the Budget Commission and the decentralization also appears the proposal that provides for the increase in bonus for national holidays and Christmas to all officials. The initiative seeks that the amount rises from S/300, which is currently equivalent to minimal remuneration (S/1,130), that is, four times more than it is now.
Warning given
In the OECD report called “Economic Studies of the OECD: Peru 2025”, which was published on September 29, it is referenced that to May this year, there were at least 242 bills in Congress with negative fiscal impacts, 184 of which would increase public spending, 42 would reduce income and 22 would affect subnational finances.
“The majority lacks cost evaluations. (…) Public hiring, which represents almost 50% of public spending, is an important factor of inefficiency in public investment,” reads the document.
In this regard, the former Minister of Economy and Finance David Tuesta said that, in the long run, the measures that the Congress wants to be paid with taxes of all Peruvians, since we must also consider some standards already published and that cost more than S/3.6 billion (including laws 31653, 32411, 32424 and 32432).
“The OECD itself projects that the debt, which is at 33% and is expected to fall to 30% of GDP, rises up to 50% for the expenditure measures that some congressmen want to boost,” he said.
Similarly, he questioned that an opinion will be approved in the Work Commission that prevents state employees from being fired when an entity is reorganized, which will also mean an expense, but also a barrier for hiring.
Much of this, he explained, has to do with the populism of politicians.
Meanwhile, the Public Policies Manager of the Peruvian Institute of Economics, Víctor Fuentes, said that all this weakens meritocracy and fiscal sustainability.
“In general you have a Congress that is highly populist and a MEF that has lost robustness and ability to stop the Fiscal Farra,” he said and pointed out that this is an irresponsibility that will be paid in the following efforts.
In addition, he indicated that there is a risk that some items are moved within the 2026 budget, to cover the actions promoted by Parliament without a minimum analysis and without measuring the risk they generate.
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