Congress: they put the public budget on hold

The approval of the projects relapsed in the public budget for fiscal year 2022 was postponed until today, despite the almost 12 hours of debate, and even when various parliamentarians have reiterated – in the two days of debate – their agreement.

It’s worth specifying that the budget is S / 197,002 million 269,014, 7.6% (S / 13,927 million) more than that assigned for this year.

Despite the articulated dialogue between the Legislative and ExecutiveConsidering that the opinions were unanimously approved during their passage by the Budget Committee, the session was extended until today at 10:00 am given that said working group headed by Hector Acuña (APP) wants to readjust some points with the Ministry of Economy to finish preparing the final opinion of the Budget, Debt and Financial Balance Law.

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Principal functions

The sector that will receive the most resources is education, with S / 35,578 million (S / 2.6 million more than in 2021), and, according to Prime Minister Mirtha Vásquez, it accounts for almost a fifth of the general budget.

While S / 22,207 million will be allocated to health, 6% more than in 2021 in order to give continuity to the hiring of personnel in the first line of care, as well as the maintenance and equipment of medicinal oxygen plants, temporary isolation centers and ICU care.

And, in the face of a possible third wave of COVID-19 in our country, the chief of staff said that S / 3,000 million have been planned to finance its containment and control.

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Regarding the agricultural sector, S / 6,000 million will be given and, of that total, the Minister of Agrarian Development, Victor MaitaHe specified that S / 2.454 million will go to the agricultural and irrigation sector; In this sense, more than S / 1,897 million will be destined for the second agrarian reform.

Regarding social protection, a budget of S / 7,104 million was assigned, equivalent to 3.6% of the public budget and S / 231 million more than in 2021. These resources will finance social programs such as Qali Warma, Juntos, Pensión 65, Haku Wiñay and Contigo.

Another point prioritized by the government It is the promotion of employment and productivity, for which they allocate S / 920 million, almost S / 398 million more than this year, which seeks to create more temporary jobs in maintenance and rapid execution activities.

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For transportation, S / 19,207 million will turn (S / 192 million more than for this year), and according to the minister of said sector, Juan SilvaIts objectives are to reduce logistics costs and times, improve the security and quality of the system and focus it on the user; as well as promoting the development of communications at the national level and strengthening governance and sector decentralization.

And, regarding housing and urban development, it was assigned S / 2,122 million (1.1% of the general budget) and for sanitation, S / 4,057 million (2.1%).

Slopes

Eduardo Salhuana (APP) questioned the “centralization” of the budget, since 70% is administered by the national government and only 30% by regional governments.

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While Wilson Quispe (PL) requested that the bonus for state workers be increased to a full monthly remuneration, as well as the increase in benefits for schooling and National Holidays.

Edward Malaga (PM) regretted that barely S / 127 million is transferred to science, an amount that is 175 and 283 times less than what is destined for health and education, respectively.

For its part, Hernando Guerra (FP) urged not to fall into bad spending practices, since its misuse “has caused us to have no roads” and the coffers are looted.

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Strengths

Forecast. According to Minister Francke, Peru will have the greatest reduction in the fiscal deficit in 2021: -4.7% compared to -5.7% in Latam.

Impulse. The Peruvian economy would grow 13% this year.

Collective bargaining and CAS at exit

Among the most relevant changes in the opinion of the public budget project for the year 2022 is the modification of article 6, which prohibits collective bargaining in the public sector.

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In this regard, the congresswoman Isabel cortez (JP) reiterated that when this restriction is lifted, workers are vindicated since “we have a government with a human face.” Salary changes would only take place from 2023, it is worth noting.

In addition, the continuity of the CAS regime is guaranteed until the end of 2022, which according to Law 31131 will progressively disappear. During the next year, CAS contracting would be allowed only in cases of replacement, and it is also authorized in that period to continue contracting via leasing of services in the entities.

Reactions

Mirtha Vásquez, president of the Council of Ministers

“The Executive shares with Congress the objective of ensuring economic stability that accelerates the recovery of production, employment, wages, and that allows a fairer distribution.”

María del Carmen Alva, president of the Congress

“It is the first time, in the last decades, that budget opinions are approved unanimously in committee, reaching consensus (…) There are no minority opinions and dialogue has prevailed ”.