One of the country’s main challenges to increase its growth rate is the improvement of productivity and this requires the execution of works that allow us to produce more with the same resources available to our country. economy. Hence, the need for the authorities to spend the budget allocated to public investment.
In 2024, public investment at the three levels of government grew 16.8% compared to the previous year, totaling S/56,722 million. Although it represents significant growth, spending was stopped and, therefore, S/13,591 million were returned to the treasury. This situation shows that the main problem of our country is more associated with the authorities’ ability to spend than with the generation of resources to carry out works.
Despite this growth, public investment spending only represents 4.7% of GDP and this level has not exceeded 5% since 2014 when it reached 5.4%.
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One of the main indicators of public investment management is the execution of expenditure, which is the ratio between the accrued expenditure on the modified institutional budget (PIM).
As of December 16, 2024, the PIM totaled S/70,313 million, according to the MEF Friendly Consultation Portal. However, as of December 31 of the same year it decreased by S/1,370 million, closing at S/68,943 million, which helped improve the execution picture in some points.
For example, with the PIM as of December 16, the central government’s public investment execution reached 92.9% and with the new PIM this rose to 95.6%. The same occurred for the execution of local governments, from 66.8% to 67.2%; and regional governments, from 85.7% to 88.2%.
In some sectors of the central government, the improvement in execution due to the PIN adjustment was significant. This is the case of the education sector, its PIN was reduced by S/335.5 million and this contributed to the execution improving from 84.5% to 90.5%.
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