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Impulso Peru: what are the 36 measures that the MEF will implement to reactivate the economy?

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This Thursday, September 8, the head of the Ministry of Economy and Finance (MEF), Kurt Burneoannounced the measures of the Impulso Perú plan, which aims to revive the economyenhance the increase and generate job. Includes subsidies for the most vulnerable sectors in the face of price hike.

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These measures and actions are distributed along three axes: improvement of the conditions for private spending, acceleration of the public investment and confidence recovery. Some of these points, such as regulation of existing norms and allocation of resources, will be made from the Executive; while from next week they will send the Congress bills to pass new legislation.

Subsidies for vulnerable households in the face of rising prices

Some of the most immediate measures announced by Kurt Burneo have to do with the allocation of subsidies to cover the needs of families in poverty:

1. LPG subsidy for domestic use: extension until September 31, 2022.

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2. Electricity rate subsidy for the most vulnerable households: 20 million people will benefit (equivalent to 5 million households).

3. Urban transport subsidy for concessioned and authorized routes such as the Metropolitan: they seek to reduce S/ 0.50 per section, which translates into S/ 1 per round trip.

4. Temporary employment program for hiring young workers (between 18 and 29 years old) with salaries of up to S/ 1,600.

5. Implementation of the S/ 270 food bonus with improvement in the targeting strategy.

6. Family housing voucher (already approved).

7. Measures to minimize the impact of fuel price volatility on the vulnerable population.

8. Implementation of the complementary feeding program for the vulnerable population (Qali Warma).

Promotion of productive financing

9. Creation of the Business Impulse Program.

10. Promotion and encouragement of greater credit for micro and small businesses (mypes).

11. Credit for small farmers and financial support for agricultural campaigns.

12. Mipyme Entrepreneur Fund: promotion of clusters, CITE, seed capital, among others.

Burneo’s announcements come after the MEF cut the growth forecast for the Peruvian economy in 2022 to 3.3%. Photo: MEF

Facilitation, strengthening and unlocking of private investment

13. New regulation of Public Private Associations (APP).

14. New regulation and complementary measures of works for taxes.

15. Bill to expedite the release of properties and interference.

16. Training program for public managers aimed at subnational authorities.

17. Bill to complete the works of the Chavimochic project (approved).

18. Unlock PPPs with a high economic and social impact, such as Chavimochic, Majes and Muelle Norte.

19. Monitoring and early warning of PPP execution.

20. Authorization for the Authority for Reconstruction with Changes to carry out maintenance on hospitals and schools.

Tax measures to boost private investment

21. Accelerated depreciation for buildings and other constructions, with which the construction sector is promoted.

22. Accelerated depreciation for electric vehicles: the period is reduced from five to two years to promote the use of cleaner technology.

Extension of tax benefits

23. Incentives for investment in research, technological development and technological innovation.

24. Promotion of investment in mining and hydrocarbon exploration.

25. Extend the VAT exemption to reduce the price of the main goods that make up the basic basket for the population with fewer resources.

The Government plans to subsidize electricity rates for 5 million vulnerable households. Photo: Andean

Acceleration and unlocking of public investment

26. Promotion of project management.

27. Reactivation of paralyzed works and unlocking.

28. Inter-institutional articulation for the application of concurrent control.

29. Raising quality standards.

30. Greater resources for investments in areas with the greatest gap.

Confidence recovery measures

31. Prioritization of the roadmap for access to the OECD.

32. Allocation of greater resources to opinion-makers in public and private investment projects.

33. Update of the National Plan for Sustainable Infrastructure for Competitiveness (PNISC) 2022-2025.

34. Creation of a high-level working group to monitor and evaluate the progress of public, private and public-private investments.

35. Launch of the new Competitiveness and Productivity Plan.

36. Regulatory shock to promote productive sectors.

Source: Larepublica

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