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Peru Fin Min: 2020 budget encourages expenditure decentralization

11:28 | Lima, Nov. 19.

Economy and Finance Minister Maria Antonieta Alva affirmed the public sector budget for 2020 increased by 5.5% and keeps encouraging expenditure decentralization.

"Considering that regional and local governments are in direct contact with citizens, and it (the budget) keeps increasing the focus on strategic sectors like education and health," she told Canal N news channel.

The cabinet member noted that financial interventions for citizens —which had been somewhat set aside— are still on the rise.

"For instance, we estimate Peru needs 50,000 warm houses for cold spell, frost, and snowfall," she added.
 
MEF head said that the 2020 budget structure responds to a directive —issued by the Cabinet of President Martin Vizcarra— to significantly improve and address —urgently— the needs of the population.

"There is a particular focus on public investment, which invigorates the economy and closes gaps," she pointed out.

Macroeconomic strength 

On the other hand, she remarked the Peruvian economy is strong and credible since the budget is fully committed to the Multiannual Macroeconomic Framework, in relation to fiscal rules.

Additionally, Alva indicated the 2019 GDP growth forecast stands at 3% with a downward bias.

Therefore, the Government's room for maneuver to boost it implies public investment.

(END) MDV/RMB/MVB

Published: 11/19/2019
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