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Minister of Economy and FinanceAlex Contreras, revealed the list of regions with zero execution of the state budget intended for this month. Among them are Lima, Junin, Pasco and Huanuco.
“IN regional governments public investment fell by 38.5%, which is normal, because usually when the government changes, officials are just being appointed, and this creates a delay,” Contreras explained.
However, it was also emphasized regional leadership such as Amazonas, Huancavelica, Lambayeque, Arequipa and Cusco, which, despite their governments being the first month, showed progress up to 4.4%.
The official stressed that this year, despite the change of government, they have exceeded the average figures at the level of the national government. “In January, 1.7% of the budget was executed, the highest execution, almost 80%, was headed by the country’s government,” he stressed.
“Usually when there is a change (of government), public investment falls; however, public investment has grown, and not only that, but the level of execution, 903 million, is above the average for the past five years and this is above what has been carried out during the years of change of the national government,” he stressed.
The problem of poor performance
Minister remembered that public investment creates a multiplicative effect; although the scenario is one of “low growth”. “In recent years, it was not possible to fulfill the entire budget, for example, in 2022, 65 billion were allocated, and only 47 billion were executed,” he said.
Due to poor budget execution, 660,000 jobs are lost every year, 50% of gaps in transport infrastructure and 60% in healthcare; In addition, it affects GDP by 2.5%.
Over the past 10 years, public investment has accounted for 21% of the total investment in the country. It also creates a multiplier effect, as for every sol spent, economic activity increases by S/1.4.
However, “there is no income problem in Peru, the first problem we need to solve is the ability to realize income,” the minister said.
Source: RPP
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.