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Pedro Franco: “If Congress approves the draft budget for 2023, as proposed, it will clearly contain an unconstitutional part”

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Former Minister of Economy and Finance, Peter Frankewarned that it would be “bad for the country” if the plenary session of Congress approved an opinion on the 2023 state budget bill proposed by the Commission on the Budget and General Accounts of the Republic, which includes additional spending in excess of S/1 billion.

In an interview program Things as they are from RPP TVstated that “Congress has no spending initiative” so giving a “green light” to the aforementioned commission’s provisions would be “unconstitutional” and furthermore would lead to “greater deficits”.

“If they want to spend more money, let them say what leather the straps will be made of and be held accountable,” he said. Peter Franke.

The former Minister of Economy and Finance recalled that the lack of initiative in spending by the Legislative Assembly has “always been respected” in the country. “And for those 30 years that the current Constitution exists, this setting has always been preserved, and not a single Constitutional Court has changed this idea or given such a bizarre interpretation,” he said.

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constitutional Court (TC) recently delivered a verdict that opens the door for Congress to push for laws that increase state spending.

According to the organization, Article 79 of the Magna Carta “does not prevent the legislative initiative presented by congressmen from being a legal source, so that subsequently and within its powers, the executive branch determines or considers the inclusion of the necessary provisions in the annual budget law to cover expenses that will eventually require their materialization.

In short, a congressman’s spending initiative is only prohibited if she intends to change the current budget, but not the budget of the next year or several years.

This interpretation of the CU has been challenged by economists who argue that it threatens the balance sheet and budget stability.

“The door opened by the Constitutional Court, I hope it will be reviewed and closed, is not good in this case, because it is the law on the budget for the next year,” he said. Peter Franke.

“If the bill on the budget is adopted, as proposed, it will clearly have an unconstitutional part,” he added.

Pedro Franke, former Minister of Economy and Finance from July 29, 2021 to February 1, 2022 | Font: PTR


Source: RPP

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