With Punche Peru 2: more than S/5,900 million to contain poverty

With almost 3 million new Peruvians who fell into poverty in 2022 —levels that are close to the pre-pandemic standard—, the Ministry of Economy and Finance (MEF) is committed to a second list of targeted measures through the Con Punche Peru 2 program, which It will inject more than S/5,900 million for the delivery of more subsidies to the basic basket, temporary employment, credits for mypes and students, and strengthening of social programs.

“(Post-pandemic) the economy, fiscal accounts and GDPbut poverty takes longer and needs finer measures. That is why we are launching this second part of Con Punche Peru”, said Minister Alex Contreras during the presentation of the new program, which will be developed in four reactivation axes: family, sectoral, for mypes and regional.

Probably the announcement that has attracted the most attention is the delivery of a protein voucher —called ‘Vale Pollo’ by the head of the MEF—, which consists of increasing the FISE discount for 1.2 million from S/25 to S/50 of families. But it is not a new bonus or additional voucher, it is an increase in the already existing subsidy for the purchase of the kitchen ball (LPG) for four months, a period in which the Government expects a moderation in inflation.

As for the social programs, Juntos will increase its coverage under the new ‘Juntos Urbano’ modality, for which a registration process will begin in the next three months. It should be noted that, currently, urban poverty in Peru is 9.6 points higher than in 2019.

For this purpose, S/100 will be added every two months for a period of six months to the households benefiting from the strategy. Transfer to Early Childhood (TPI), which is aimed at pregnant women, girls and children under 12 months of age.

Education and work will not be overlooked from the MEF either. In order to provide greater opportunities to lower-income sectors, resources will be allocated so that students with potential can access credit to pursue higher education.

In the second case, Lurawi —which cares for victims of gender violence— will be strengthened to contribute to job creation in the territories with the best tourism potential.

reactivation of mypes

Labor promotion policies also cover micro and small businesses. The MEF will grant a subsidy to preserve 150,000 formal jobs in Cajamarca, La Libertad, Lambayeque, Piura and Tumbes. The idea is to co-finance, for up to three months, the payroll of workers with “greater relative vulnerability.” It will reach more than 45,000 formal employers (mainly mypes).

In the same way, an additional S/1,000 million will be allocated to the Impulso MyPerú program in order to offer loans in better conditions and greater access to accelerate the recovery of this sector.

Finally, “and thinking about the first quarter of next year”, an additional deduction of 50% of the basic remuneration will be offered that new workers in the textile and clothing sector be paid, in addition to an accelerated depreciation that may be applied for the taxable year 2024. Recruitment incentives.

“Impulse MyPerú is going well and for this year we are going to raise the guarantees from S/2,000 to S/3,000 million to continue financing the mypes and that none of them go bankrupt. The average rate that they have been obtaining is one third of what they would obtain in the market finance,” said Minister Contreras.

With Punche Peru 2 finally contemplates sectoral measures, among which the strengthening of the airport industry and naval —with special emphasis on the completion of the Chancay megaport—, boosting mining operations through 21 measures that reduce requirements to explore and exploit resources, and preventive maintenance at archaeological sites in the face of rain. Everything, aimed at accompanying Con Punche Peru 1, which should be enough for “the first, second and part of the third quarter”. Time will tell.

Solidly expect the El Niño phenomenon

With Punche Peru I has transferred, so far, more than 80% of the amount that had been approved (S/7,856 million), but there are still S/1,920 million that will be placed “in the coming weeks.”

Despite a real fall of 12% until March, MEF considered that private investment will recover in the third and fourth quarters.

In this sense, Minister Alex Contreras explained that the difference with the previous year is due to the end of the construction period of quallaveco.

As for public investment, Minister Contreras said that it should close the year with rates close to 4%, with a cumulative rate for the year of 17%, which —according to the photograph at the time— “is sustaining reactivation and growth.” .

Only until February of this year, the Association of United Mypes of Peru (MUP) reported that more than 70,000 companies in the sector went bankrupt as a result of the demonstrations, in addition to the climate emergency caused by Cyclone Yaku and the huaicos.

Regarding the fiscal deficit, the MEF assured that it will tend to fall in the following months, “as fiscal income recovers and exceptional expenses dissipate.”

At this moment, there is a surplus of 2.7%, higher than the average registered in the last six years. “In fact, given the low execution in some subnational governments, there is a risk that the deficit will be less than we expect. Therefore, We take this space to continue encouraging the fight against poverty”he claimed.