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MEF: execution of public investment reached S/903 million, a growth of 9.9%

MEF: execution of public investment reached S/903 million, a growth of 9.9%

The National Government recorded the greatest advance. While the public investment of regional and local governments registered a fall of 38.5% and 57.5%, respectively.

During January of this year, the execution of the public investment it reached S/903 million, which represents a growth of 9.9% compared to the same month of 2022, in which S/822 million was executed. Likewise, the Ministry of Economy and Finance (MEF) explained that it is one of the highest levels recorded in the first month of the year, especially in a period in which new authorities enter subnational governments.

“This has been the record month of January with a change of government. Usually, when there is a change —above all, in the subnational authorities and even in the National Government—, there is a drop in the public investment; However, this has grown and not only that, but the level of execution —S/903 million— is above the average of the last five years and is above what has been executed in the years of change of National Government”, pointed out the head of the MEF, Alex Contreras.

In this way, the MEF specified that, in the first month of the year, 1.7% of the total public budget for the year 2023 has already been executed. However, by level of government, spending has been uneven. In detail, the National Government executed almost 79% of the total amount with S/717 million, while regional and local governments registered S/106 million and S/80 million, respectively.

disaggregating the data, the execution of the National Government represents a growth in investment of 55.7% compared to January 2022. In contrast, the disbursement of regional governments means a drop of 38.5%, while what is executed by local governments implies a retracement of 57.5%.

Execution of the three levels of Government.  Source: MEF

Execution of the three levels of Government. Source: MEF

As explained by the head of the MEF, this lower execution by regional and local governments is something that was expected, since the new authorities are on the learning curve. He added that this lower dynamism is also due to the fact that subnational governments are just appointing their officials. To this is added the social conflict that is currently lived in the country, which has generated some operational impacts in some areas.

“There has been an important impulse from the National Government in line with what the president and the premier said. It is the effort that we have to make at the Executive level to advance in this closing of gaps. There was a 38.5% drop in the regional governments and something similar has happened in local governments, in which the public investment has been reduced by 58%,” said the official.

Source: Larepublica

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