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Kurt Burneo: what are the first challenges for the new head of the MEF?

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The Economist Kurt Johnny Burneo Farfan He was sworn in this Friday as Minister of Economy and Finance, in a ceremony held at the Government Palace.

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The long-standing professional and former Minister of Production and Deputy Minister of Finance takes the place of Oscar Graham, who was in charge of the MEF since February of this year.

But, what will be the first challenges that Burneo will have to take on as the new head of the MEF? Among his multiple tasks, the former professor will concentrate his efforts on the publication of two documents of vital importance for the sector, which should be ready until the 31st of this month.

Its about Multiannual Macroeconomic Framework 2023-2025with the new projections for the Peruvian economy, and the presentation of the Public Sector Budget Bill for Fiscal Year 2023which must be presented before the Congress of the Republic.

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In addition, until July 31, before Burneo took office, the MEF had to update the National Infrastructure Plan (PNIC)which includes 52 projects to be prioritized by the Executive in order to promote growth, competitiveness and development in the country, from a sectoral and territorial perspective.

Multiannual Macroeconomic Framework 2023-2025

The Multiannual Macroeconomic Framework (MMM) is the most relevant document that the Government of Peru issues in economic matters. This document contains the macroeconomic projections and the assumptions on which they are based, for a period of four years, which includes the year for which the Public Sector budget is being prepared and at least the following three years.

The MMM is published in August and is updated in April, the month in which the MEF publishes on its institutional portal a report with the update of the main macroeconomic and fiscal variables of the MMM that is current as of its date of preparation.

Then, no later than July 31 of each year, the MEF sends the MMM project to the Fiscal Council for its technical opinion within fifteen calendar days, prior to the approval of the Council of Ministers.

The MMM is approved by the Council of Ministers, before August 30 of each year and is published in its entirety, together with the Report of the Fiscal Council, within two business days following its approval, in the official newspaper El Peruano and in the institutional portal of the Ministry of Economy and Finance.

Public Sector Budget for Fiscal Year 2023

The Public Budget is the main management instrument of the State to grant greater well-being to citizens, through an efficient and effective allocation of public resources, in accordance with the availability of public funds.

The 2023 Public Budget has been formulated between January and August of this year with the participation of all the budget specifications, a process in which the availability of resources and their distribution among the entities is defined. It will be presented as a Bill before Congress.

This project must be approved between August and November. For this purpose, the Budget Commission of the Congress will study the document presented by the Executive before the Plenary debates and approves it.

Finally, the execution and evaluation of the 2023 Public Budget will take place between January and December of said year. Here the entities of the three levels of government (local, regional and national) receive public resources and meet their spending obligations according to the approved budget.

Kurt Burneo: a new stage for the MEF

Upon his arrival, the new minister Kurt Burneo He has emphasized that his portfolio will seek to recover the confidence of economic agents. In this line, he recognized that it is necessary to give signals that reduce the uncertainty around the economic policies that will be executed in the short term.

This, with the aim of “achieving a growth rate higher than the 2.2% projected for this year. By way of analysis, he recalled that among the ravages of COVID-19 in Peru, the increase in underemployment and informality still persists, to the point that “if before it affected 7 out of 10 citizens, now it is 7.8 out of every 10″.

On the other hand, he also referred to the delivery of emergency bonds to the population and considered that the aid delivery scheme should be evaluated for a better targeting of said subsidy.

“We need to improve the quality of SISFOH information and I believe that the allocation of bonds has to respond to the special condition of the citizen. I do not think it is favorable to distribute bonds without identifying those who require this help. It is a task that will be the first priority in the MEF”, she stated.

Source: Larepublica

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