MEF: execution of public investment grew 16% in April

The head of the Ministry of Economy and Finance (MEF), Alex Contreras, pointed out that S/10,659 million in public investment were executed from January to April, reaching a new historical record, 16% more than the previous year. It also implies an execution of 17.5% of the execution of the total budget for 2023, which amounts to S/60,770 million. “Investment continues to grow despite the fact that it is the first year of government of the regional authorities,” said the minister. It should be noted that the figures presented were those of nominal value, but not real.

“This is very important, this implies a budget execution of 17.5% and this is something challenging considering that this is the first year of management of subnational governments. If we leave aside the pandemic, we have not observed similar rates since 2014. More public investment means greater dynamism of the economy, but also public services. So we are going to continue advancing not only to improve execution, to spend more, but to spend better,” Contreras said.

In detail, it was announced that the national government registered S/5,363 million for execution, 50.3% of the total amount. While local governments reached S/3,401 million (16.2%) and regional governments S/1,895 million (13.5%).

In nominal figuresin April the regional governments registered a growth of 26.8% in public investment. Junín, Amazonas and Loreto, in that order, are the regions that lead the ranking of executionwith the expansion project of the La Libertad health establishment, improvement of departmental roads and construction of the tourist marina, respectively.

“Regarding the agenda for the second quarter, we have already discussed a series of measures that will contribute to improving the execution of public investment, but also generate capacities and generate structural changes that allow public investment in Peru to converge to international standards,” explained the minister.