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Kurt Burneo: “An unbalanced budget could not be approved”

Additional expenses of the congress will be within the budget of the sectors.

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After approval State Budget Law 2023Minister of Economy and Finance, Kurt Burneoexplained why there was controversy regarding the approval of the additional spending proposed by the Congressional Budget Committee in the amount of sols 1,164 million S/.

The said amount, earmarked mainly for various social projects, was unsustainable and resulted in an “unbalanced budget,” Burneo said, as there were insufficient resources in the reserve fund to cover it.

“Reserve Mr. accident says that 1% should be reserved for dealing with earthquakes, floods, phenomena, etc. Here we are talking about S / 1.415 million salts,” the minister explained.

While the fund may be used for forecasting purposes, “Additional costs cannot be funded because of the contingency reserve, because it has already been allocated, so it is obvious that an underfunded budget is being formed, ”the minister warned.

Negotiations went well

If additional spending had been approved, the budget would have been born out of balance and “managing a deficit to cover is difficult.” The minister added that this argument was accepted by the commission and therefore Negotiation it was positive.

“Anything that corresponds to additional spending, the sectors were going to take over with the budgetary framework provided to them … and making some adjustments to the budget implies a balance between spending and spending,” he said of these negotiations with Congress.

Difficult years ahead and urgent adoption of laws

Minister recalled Congress who remains responsible for approving the various accounts included to fulfill Impulso Perú’s reactivation plan, including an additional loan to finance the Fuel Price Stabilization Fund.

These projects are needed to stimulate the economy, especially since a sharp global slowdown could occur next year.

“You have to be careful about the tax side. 2023 will be a bad year in terms of the stability of the international economy: interest rates will be high and inflation is still expected, this sets up a more complex scenario than the one that existed in September when Impulso Peru was set up,” he pointed out.

Source: RPP

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