The Government of Dina Boluarte sent to the Congress of the Republic the bill that establishes the public budget for 2024, which would amount to S/240,806 million, some S/26,000 million more than what was registered in the Institutional Opening Budget (PIA ) this year (see infographic).
Said budget sent by the Executive represents 22.4% of the national GDP. According to the document, the sectors with the greatest participation in the allocation of resources are education (19.3%), management and contingency reserve (12.4%), health (12.2%) and transportation (9.1%). .
Peaks not seen in over 10 years
Alex Contreras, head of the Ministry of Economy and Finance (MEF) explained that the initial budget was going to increase by 12% compared to 2023, in order to “close the social gaps” and address problems such as anemia and poverty, and even, to combat citizen insecurity and drug trafficking, to the point that they will bet on a Con Punche Security, “better than the Bukele plan.”
Alex Contreras argued that the increase in the public budget is intended to close the social gaps that have afflicted the country in recent years. Photo: Félix Contreras/La República
Thus, the budget for 2024 sets S/16,213 million for public order and security, the highest amount recorded in the last 12 years.
Another headache for Peruvians is the imminent arrival of the El Niño phenomenon —which would affect the economy at the end of the year—, for which reason a budget of S/2,644 million is proposed to attend to the emergency due to natural disasters, also the figure highest in just over a decade.
More social protection
In social welfare, the Government of Dina Boluarte assures that with S/6,402 million in water and sanitation —also the most popular allocation in 12 years— it will seek to reach 96.5% of the urban population and 87.6% of the rural, so that they have this basic service in their homes.
Boluarte announced recently that he was going to Expand the universe of Pension 65 beneficiaries, so they will allocate S / 1,302 million to accommodate 819,346 older adults. In general terms, social protection will have a budget of S/9,307 million, 19% more than the PIA 2023, and with regard to programs such as Contigo, Qali Warma, Vaso de Leche and Comedores Populares, the total exceeds S /4,000 million.
On the other hand, in education —which concentrates more items— S/46,506 million is expected, 40.3% more than what was allocated for the bicentennial. The priority here is S/24,394 million for interventions in initial, primary and secondary training (76.9% of the budget).
On the other side of the coin, the Government is only committed to S/12 million to prevent drug use in schoolchildren and S/2 million for actions focused on reducing violence against women (both represent 0.0 % of the sectoral budget).
“Decentralized Budget”
The MEF emphasizes that “the budget of S/241,000 million incorporates a record financing” to subnational governments, being “the most decentralized since 2002”, the year that precisely marked the beginning of this policy.
In detail, 57% of the specifications —excluding what is not possible to decentralize— corresponds to regional and local governments; added to the fact that the contribution of subnational governments to the total budget increased to 36%.
As a result of the delay in the execution, Contreras has warned that the resources will be reallocated to the regions that execute better, although “without affecting the following year”.
Project will be supported on September 6 in Congress
On Wednesday, September 6, the Plenary Session of Congress will meet for the Executive to present the points behind the 2024 budget project, according to the president of the Legislative Branch, Alejandro Soto.
According to the guidelines of the Congress, the support of the spending priorities and the sources of financing will not exceed 60 minutes.
It is worth noting that Congress has until November 30 to debate and approve the public budget; Otherwise, the Government of Boluarte can promulgate it by means of a legislative decree.
It is worth mentioning that, over the course of the months, everything turns towards the Modified Institutional Budget (PIM) due to the updates in each portfolio.
The numbers
S/2,000 million will be assigned to health to expand insurance coverage.
S/6,000 million will be allocated to fight crime: provide the PNP and night watchmen.
Public budget for 2024 has a more decentralized approach, according to the MEF
Infographic – The Republic
Source: Larepublica
Alia is a professional author and journalist, working at 247 news agency. She writes on various topics from economy news to general interest pieces, providing readers with relevant and informative content. With years of experience, she brings a unique perspective and in-depth analysis to her work.
