Budget Committee will vote on Wednesday MEF supplementary appropriations project

The head of the Ministry of Economy and Finance (MEF), Alex Contrerassupported this Monday, March 27, before the Congressional Budget Commission, the PBill of Law No. 4482/2022-PE, which proposes the approval of supplementary credits in favor of the MEF Contingency Reserve for S/8,232 million for the reactivation of the family, regional and sectoral economy, after the crisis caused by Cyclone Yaku.

During his presentation, the minister explained that the country has sufficient fiscal space to incorporate up to more than S/5.7 billion via supplementary credit in the Public Sector budget for Fiscal Year 2023.

“We have balances that have remained from last year and what we are asking is that, instead of those balances going to a deposit account and being saved, they be used to attend to the emergency, for reactivation. That is why the Article 2 (of the bill) begins with this proposal for the use of the secondary liquidity reserve”, he commented.

However, Contreras warned that, taking into account that we are in the first months of the year, andThese resources could be insufficient to face the emergency since we are still starting 2023. “In April and May there are rains that are going to be very strong, and this is the minimum we need at this time, it may be that in a few weeks, in a few months, I or a successor will have to come again to request another loan extra,” he said.

Voting will be on Wednesday

The Executive’s initiative entered Congress on March 14, and although it has been discussed relatively quickly, the Budget Committee suspended the vote until Wednesday, March 29 at 3:00 p.m.

This, after Congressman Luis Arturo Alegría requested an intermission from the president of the commission, José Luna Gálvez, and the Minister of Economy, Alex Contreras, to better debate the proposals of the Executive and reach a consensus among the members of the group of work.

The head of the MEF promised to send today in writing the legal framework corresponding to some observations raised by the president of the commission and other legislators.