MEF: We started the year with the lowest contingency reserve in 14 years.

Peru started this year 2023 with Contingency reserve the lowest figure in the last 14 years, said the head of the Ministry of Economy and Finance, Alex Contreras.

“This year we started with the lowest contingency reserve in 14 years, around sol 2,400 million, which we have already used to attract attention emergency as to the economic costs of social conflict, the presence of Yaku and the coastal child, ”he said during his speech at the plenary session of Congress.

Thus, Contreras explained the reasons why the executive branch is asking Congress to approve an additional loan that would fund emergency aid and economic recovery.

“This will allow us to support the recovery economy and finance the emergency, which is very important at this time given the risks we face. Emergency needs already exceed 4 billion salts,” he said.

Contreras indicated that the needs are currently being met through contingency reserves and budgetary reallocations, i.e. budget various ministries to cover the costs caused by rains and landslides for the state, “but the impact that this loan will have is key to the continued implementation of measures to meet the requirements.”

The head of the MEF recalled that some of the measures that are being implemented to reactivate the economy in the midst of an emergency are part of the “Con Punche Perú” plan, which is aimed at reactivating the family economy, stimulating the growth of regions. and reopen productive sectors affected by the conflict.

“This is already happening, but we want the plan to keep moving forward (…) In this loan, we have 4,382 million soles in measures to be approved. Total cost reactivation It will be 7,800 million soles,” he added.

As he commented, some of the measures that are still being developed are the massive use of natural gas, additional nutrition for vulnerable populations, and the promotion of programs such as Lurawi Peru, which provides temporary jobs, or the “Glass of Milk” program.

He also indicated that an expansion of the motivation program for local governmentexpansion of municipal incentive bonuses for the governments carrying out the largest part of the budget.

In addition, he recalled that part of the requested additional loan of more than SGD 8,232 million would also serve to increase the resources of the contingency reserve. It is anticipated that an additional S$4,000 million of the total will be allocated to the contingency reserve to accommodate possible unforeseen circumstances.