This week, the Fiscal Council warned that between 2021 and 2025, 229 laws were approved with an impact of S/36,000 million on the treasury. Despite this, on the bench of We can Peru It seems like they don’t learn.
This month alone, said parliamentary group has presented a series of initiatives that could further affect the public budget. For example, they have a project that equates the remuneration of public defenders with first-level judges and prosecutors, in application of the principle of equality. This would mean an additional cost due to increased salaries.
Said bench has also presented a proposal for the new remuneration scale applicable to the workers of the Peruvian Corporation of Airports and Commercial Aviation Sociedad Anónima (Corpac).
Another proposal that would also generate greater public spending is the one that authorizes the change of regime for CAS workers from the Comptroller General of the Republic to regime 728. Although this process is proposed to be gradual over three years, it will mean a larger budget to achieve this goal.
In another project, the bench provides for the increase in the remuneration scale of the workers of the Institute of Water and Environment Management (IMA) and the Peru – UNESCO Tourism and Cultural Plan (Copesco) of the Regional Government of Cusco, subject to the 728 regime.
Podemos Peru also has an initiative that authorizes the exceptional appointment of health professionals, technicians and healthcare assistants of the Ministry of Defense and its contracted organizations until December 2024 under the CAS regime.
This month, something that the group led by José Luna has insisted on is the withdrawal of up to 4 UITs from the ONP, despite the fact that this is a distribution system where there are no individual accounts. And continuing with the issue of pensions, an initiative has also been presented that establishes that contributions to the pension system are optional for all workers, which puts people’s retirement at risk.
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Although all the proposals seem to have a social and justice purpose, they are populist measures that in the long run could harm the country’s finances. In this regard, the former Minister of Economy and Finance Luis Miguel Castilla questioned whether this type of initiatives continue to be presented to date.
“It seems that political parties do not understand the serious problem that we are currently experiencing and that what is required is to effectively avoid spending more than necessary,” he indicated.
In that sense, he recalled that for two consecutive years the fiscal rules have been broken and pointed out that there is a risk that the debt will be greater if the investment grade is lost due to unsustainable expenses.
“It is extremely irresponsible to persist in boycotting the fiscal strength that we had. We have a Ministry of Economy that has lost the power to contain spending pressures and what this does is lose reliability,” he added.
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