The management of public finances of the Boluarte government remains under question, since it fails to close with surplus despite the impulse of tax revenues derived from high prices of minerals.
This time the criticism was from the Organization for Economic Cooperation and Development (OECD). The organization issued a report in which it stated that, although the tax deficit reduction trend would not be held, it would not be achieved with the goal planned for this year.
“Although high metal prices will support public income and reduce the fiscal deficit, additional measures are required, equivalent to 0.3% of GDP in 2025 and 0.4% of GDP in 2026, to reach the goals of the fiscal rule,” the intergovernmental organization said.
At the end of August, the Ministry of Economy and Finance (MEF), headed by Minister Raúl Pérez Reyes, foresaw that the Government Revenue and Expenses Differential would end in red (deficit), at a value equivalent to 2.2% of GDP. And although to August, the deficit reaches 2.4% of the product, the expenditure is kept increasing.
“Fiscal pressures are increasing due to increasing spending initiatives, the recent introduction of new tax exemptions, including those applicable to special economic zones, to a reform of insufficiently financed pensions, and the possible additional support to Petroperú,” the OECD noted.
Measures
According to the OECD, to comply with the prudential rules, our country requires a stricter control of current spending, particularly public sector salaries, gradual elimination of fuel subsidies and the elimination of tax exemptions.
The organization also foresaw that, for this year, the Peruvian economy would reach a growth of 2.8% and by 2026 of 2.6%, “reflecting global and domestic political uncertainty.”
Fact
Peru must increase its collection and improve the efficiency of spending to safeguard its fiscal sustainability.
Mathias Cormann, general secretary of the OECD, said the tax debt would increase slightly.
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