Populism in Congress continues despite warning from the Fiscal Council

Despite warnings from Fiscal Council (CF) on the negative impact of the legislative initiatives approved and presented in Parliament, in the Congress They continue to launch populist projects that affect public finances.

The Fiscal Council warns that the laxity of the MEF and the approval of laws without technical support by Congress will make it impossible to comply with fiscal rules, leaving the next president with a scenario of seriously deteriorated public finances in the country.

Only this week a new bill was presented that repeals emergency decree 010-2025 that approves the restructuring of Petroperú. If this initiative continues, the possibility of continued waste in the public oil company opens up.

Added to this is that in February, proposals have been presented that authorize the incorporation of workers who are part of the CAS regime to legislative decree 728, which would mean greater expenditure of resources.

Among the projects that have recently appeared in Parliament are also those that authorize, “on an exceptional basis”, the change of contract of temporary CAS workers to Indeterminate CAS.

On the other hand, a proposal has also been presented to eliminate services, intermediation and labor outsourcing. This initiative, despite the fact that micro and small businesses themselves have opposed this type of initiative.

TIME BOMBS

In a recent interview with Perú21, the president of the Fiscal Council, Alonso Segura, stated that urgent and immediate actions are needed to stop the deterioration of public finances. For this year, he indicated that there are commitments for salary increases of around S/7,800 million when the fiscal space provided by the Ministry of Economy and Finance for this purpose is only S/2,100 million.

For Segura, part of the problem also comes from the Executive. According to him, the Government, in less than four months, approved 26 new laws with an adverse fiscal impact and without any observations.

“Hopefully it is true that they will take some law to the Constitutional Court. However, it is also complicated, because if the Executive did not observe them, the Court’s presumption would be that the Executive agreed,” he commented.

Peru needs us informed to make decisions. Subscribe for free to the Perú21 newsletter: THE TOP 5 NEWS YOU SHOULD KNOW TODAY. Click on the next link.