Executive branch enacts budget law for fiscal year 2023

The Executive power enacted the Law No. 31638 either Public Sector Budget Law for Fiscal Year 2023, which amounts to S/ 214,790 million 274,052 and which includes the maximum budget credits of the specifications of the national Government, Regional and local Governments, and decentralized instances, in accordance with the Political Constitution of Peru.

The norm was approved the previous week by the Plenary of Congress after the Budget Commission and the Ministry of Economy and Finance (MEF) managed to agree on a substitute text that included the request of several parliamentarians. In this way, complementary provisions were included that authorize resources to finance social demands.

The item for 2023 is equivalent to a 9% increase in relation (S/ 17,788 million) to the opening institutional budget (PIA) for 2022, which represents the highest increase recorded in the last five years, according to the MEF.

Law of financial balance and indebtedness

This Tuesday, Law No. 31639 or Public Sector Budget Financial Balance Law for Fiscal Year 2023, which establishes the rules to ensure the balance between income and spending in the State.

The income for the financing of the 2023 public budget comes from ordinary resources (S/ 141,500 million soles), which include the collection of current income and capital income, deducting the amount corresponding to the collection commission. “This commission constitutes a resource of the National Superintendency of Customs and Tax Administration (Sunat) and is automatically debited from the collection made,” says the rule.

Also, it consists of determined resources (S/ 39,100 million), resources for official credit operations (S/ 28,300 million), directly collected resources (S/ 5,300 million) and donations and transfers (S/ 296.7 million).

Finally, Law No. 31640 or Public Sector Indebtedness Law for Fiscal Year 2023, whose objective is to establish the maximum amounts to agree on new external and internal debt operations.

This standard includes the amount of guarantees granted and contracted by the national government to meet requirements derived from the processes of promoting private investment through public-private partnerships.