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José Arista: "Whether the fiscal deficit rule is violated or not, that is relative"

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The Minister of Economy, Jose Aristaminimized this Monday that this year the fiscal deficit limit will not be met. In that sense, he considered that respecting this important indicator is “relative.”

“A fiscal deficit is always a deficit, it doesn’t matter if it is within or above the rule. Whether the rule is violated or not, that is relative,” he said in RPP.

Likewise, the head of the MEF compared the fiscal deficit with the inflation rate and assured that “the rule has only been complied with seven times.”

Arista questioned the Fiscal Council’s warnings about the increase in the fiscal deficit and assured that this institution “instead of making public criticisms should send us the reports and propose solutions.” Furthermore, he considered that the head of the Central Bank, Julio Velarde, “is right” that the deficit must be controlled. However, he noted that Velarde “assumes” that the deficit will be permanent and assured that it will be temporary.

“Peru has to control its fiscal deficit in the long term”he assured.

On the other hand, Arista assured that the increase in the minimum wage will be announced in the coming days. However, he assured that the amount by which the minimum vital remuneration will be increased has not been defined “yet.” In that sense, he specified that the announcement will be made before the new year.

“It makes no sense to observe laws of Congress”

The Minister of Economy assures that it is not that there is a lack of “character” to oppose regulations that increase public spending. “What it often comes down to is urgent obligations that must be fulfilled,” he said.

Likewise, when asked why the Executive does not observe the questioned laws that are approved by the CongressArista pointed out that “it doesn’t make much sense” to observe them.

“If we look at it, the following week it is published out of insistence; that is, it doesn’t make much sense,” he said.

Arista also questioned the VAT reduction for hotels and restaurants, and considered that it cannot benefit the entire union, but that, if done, it should only be “focused.”

“They were given three years with a tax reduction. Those who are not competitive in these three years would have to dedicate themselves to another activity, but the State does not have to lose in that way. But the entire union cannot benefit,” he assured.

Oil lots

Arista assured that it agrees with the position of the National Society of Mining, Petroleum and Energy (SNMPE), which advocates that oil lots 1 and 6 be offered in an open tender where the private sector also participates.

“We already spoke with Mr. Narváez, the Minister of Energy and Mines did, and we have agreed that the SNMPE’s position is the one that will be respected,” he said.

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