Public Budget 2022 contemplates a more decentralized approach

This Tuesday the draft laws passed on to the Public Budget for Fiscal Year 2022, which, according to the president of the Congressional Budget Committee, Héctor Acuña Peralta (APP), has taken a decentralist approach.

Acuña Peralta argued that the PL of the Executive contemplated delivering only 1% of the VAT for the Regional Compensation Fund (Foncor), however, after the sessions of his working group together with the Minister of Economy, Pedro Francke, a consensus was reached on an increase to 1.5% for both 2022 and 2023 within the approved opinion. From 2024 it will be 2%.

“Until last year it was an amount of 600 million (soles) for regional governments (through Foncor). That is, they will advance 0.5% of the amount of money for the regional governments and thus our authorities arrive less in Lima to knock on the doors of the ministries. This is equivalent to 4.7 billion more or less. ”, He told RPP.

The parliamentarian pointed out that “an important step is being opened to the process of fiscal decentralization,” since more resources will be injected into regional governments through Foncor.

Finally, it is worth noting that the bill assigns 6,790 million soles to the Municipal Compensation Fund (Foncomun), a figure more than 1.5 million higher than that of 2021 (see table).

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