Per capita budget in Peru is between S/3 and S/30,000 per year

Per capita budget in Peru is between S/3 and S/30,000 per year

Inequality. The MEF acknowledges that, in the last five years, there were districts in which an average of S/250,000 per person was invested, while the average did not exceed S/5 in others.

The per capita budget at the district level in Peru registers an abysmal difference. In some municipalities, in the last five years it has been approximately S/5 per inhabitant and in others it exceeded S/200,000, acknowledged the head of the Ministry of Economy and Finance (MEF), Alex Contreras.

“There are districts that, on average, in the last five years have received S/250,000 per person and there are districts where S/5 per person has been invested in recent years,” He commented at the Forum: Strategic Planning for the Sustainable Development of the Regions in Peru, organized by the National Society of Industries (SNI).

Contreras explained that there are districts of Metropolitan Lima where an average of S/30,000 per person is invested each year, which contrasts with the per capita budget around S/3 in other parts of the country.

Among the districts that have had a lower budget are: Amashca (Áncash), Villa María del Triunfo (Lima), Alberto Leveau (San Martín), Mazán (Loreto), Coata (Puno), Tahuamanu (Madre de Dios), Fernando Lores ( Loreto) and others (see infographic).

Infographic - The Republic

Infographic – The Republic

In the official’s opinion, to break this imbalance it is essential that the Government promote economic growth based on the regions with the highest rates of social conflicts, population density and unresolved basic needs. “If we don’t rethink the budget by looking at these indicators, we’re going to make the gap even bigger,” he said.

On the other hand, the minister highlighted that, during the first half of this year, the national economy will depend on the strength of private consumption and public investment.

regional industry

Another important element to reduce the existing social gaps in the country is the promotion of the industry in line with the productive capacities of the regions, according to the SNI.

According to the business union, the regional strengthening of the subsectors that make up this item will allow the generation of around 900,000 jobs in the country. “We are going to increase almost one million jobs and by 2031 we will have 3.2 million productive jobs,” said Jesús Salazar Nishi, president of the SNI.

In addition, he added that the application of this sectoral policy will reduce the level of poverty in the country to 16% by 2031. Which will mean that 2.8 million people leave this condition in relation to the figures for 2021.

Losses in production due to protests

Peru has lost around S/3,000 million in production as a result of the social upheaval that caused roadblocks and the takeover of companies, said the head of the SNI.

However, he said that if a regional productive agenda is achieved, this negative figure could be reversed until the end of the year. “We said that this year we could be between 2.5% and 2.8% growth. The first months did not accompany us with this number; however, we believe that due to the growth inertia that Peru brings, we could still maintain that 2, 5%,” he said.

reactions

Alex Contreras, Minister of Economy and Finance

“There is great inequality in the budgets (…). There are districts that, on average, in the last five years have received S/250,000 per inhabitant and there are others where S/5 has been invested.”

Jesús Salazar Nishi, president of the SNI

“If we had had the same agribusiness sector policy, but in the different sectors, today we would have at least four engines running to drive the economy”.

Source: Larepublica

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